A few years ago, buying furniture was a lengthy process. However, Pepperfry is assisting in closing that gap. You have two options: either order it custom-made at a greater cost while being dependent on the carpenter or the shop or swiftly rush from showroom to showroom looking for a specific style or calibre of the furniture. You remember being unsatisfied with the furniture’s quality, design, or extravagant price even after running from pillar to post and waiting for your buy.
However, the process is much easy now. Today, you can easily choose any piece of furniture you want online, have it transported to your home, have it made, and have it installed whenever it’s convenient for you. Due to these advantages, more people are opting to purchase furniture online.
Established in 2011, Pepperfry offers stylish, premium furniture with attractive EMI options. The company provides electrical equipment and wall art, as well as everything else you need to transform your apartment into a house and your ideal home. Furniture, lighting, kitchen appliances, housekeeping, bath accessories, dining, etc. are among the categories of home decor that the company Pepperfry now concentrates on and sells products in.
START OF PEPPERFRY
The largest online furniture retailer in India, Pepperfry, was founded in 2011 by Ambareesh Murthy and Ashish Shah. However, it was first created as a horizontal online market focusing on fashion and lifestyle. Yes, Flipkart was currently simply another e-commerce firm, and Amazon had not yet had a significant impact on the Indian markets. The prior business endeavour of the corporation started out well, but eventually, the profits stopped. As a result, the business made the decision to shut down and concentrate on a lucrative niche strategy including the online sale of furniture and household goods.
This online store offers a wide assortment of products that offer clients a wonderful experience. They are the leading brand in their category as a result of their offerings and distribution method. The company’s website received more than 7 million views per month, it had more than 4.5 million registered users and subscribers, and it employed over 10,000 merchants.
When Pepperfry originally began selling things, it did so under numerous lifestyle categories. After a year, Pepperfry, in 2013, shifted its emphasis and started selling only furniture, home décor, and related things online. With headquarters in Mumbai, Pepperfry has developed more than 60 Pepperfry studios in more than 18 Indian cities. A variety of furniture is shown in these studios so that potential customers can view and touch it before placing an order.
GROWTH OF PEPPERFRY
With a CAGR of more than 35%, the value of the online furniture industry reached $25.7 billion in FY20. Pepperfry is one such company that is to blame for Indians’ growing embrace of online furniture shopping.
Ambareesh Murty, the company’s founder, CEO, and former president of eBay India claims that the gross merchandise value (GMV) of Pepperfry surpassed Rs 100 crore in January this year. The online store, which debuted in January 2012, offers products in a variety of categories, including fashion, lifestyle, and home. Techcircle. in held a brief conversation with Murty to learn more about the accomplishments made in the first year of business.
The founders were mysteriously left stranded at a time when the brand lacked a name and money despite having previously invested their entire life savings. Murty and Shah persisted nevertheless, persuading an additional 25 people to visit Goa for the duration of their time there. This was a challenging and intriguing decision made by the founders since they didn’t want to miss their last opportunity to have fun.
The funds raised allowed Pepperfry to create more Pepperfry Studios, or experience centers, in smaller cities and villages, expanding its logistical network from 500 to over 1,000 cities.
FUNDING of PEPPERFRY
The final bright spot was the Series A financing round, which helped Pepperfry raise over $5 million. The team experienced surges of inspiration and passion as a result, and the company hasn’t had to look back since.
Pepperfry intends to raise up to $300 million through the sale of new stock and a secondary offering of shares prior to its upcoming IPO. A total of Rs 250 crore in funding was given to Pepperfry in 2018 by State Street Global Advisors, the asset management branch of State Street Corporation, one of the largest investment management firms in the world. One of the greatest sums of money ever raised by an online retailer of furniture and home items in India.
Goldman Sachs, Bertelsmann India Investments, Norwest Venture Partners, and Zodius Technology Fund, along with other prior backers, enabled Pepperfry to raise Rs. 210 crores in a Series E funding round in 2016.
With the money raised, Pepperfry was able to grow its logistical network from 500 to over 1,000 cities by opening more Pepperfry Studios, or experience centers, in smaller towns and cities.