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Online furniture market place Pepperfy has got a new high profile investor in the form of Pidilite, the brand owner of popular adhesive brand Fevicol.
Pidilite has led a $40 Mn funding round in Pepperfy, according to Economic Times (ET). The ET report further claims that existing investors like Goldman Sachs and Northwest Venture also participated in the round.
However, there is no clarity about at what valuation Pepperfy raised the latest round. Unconfirmed reports citing highly placed sources claim that the company may raise more funds in the coming months.
The latest capital infusion will come as a major boost for the online furniture marketplace as it reportedly gets ready for an IPO next year. If this public issue does take place then Pepperfy would become india’s first furniture e-tailer to raise external funding through an IPO.
Most investors are foreseeing huge opportunity in India’s online furniture marketplace, with the market currently estimated to be around $20 Bn. The recent entry of international brand like Ikea in India has probably further increased investor’s interest in India’s furniture market.
Pepperfy’s long term success, including its IPO success, will depend on enduring health of its balance sheet. If the numbers put forth by the company are to be believed then the losses are narrowing and revenue is steadily growing.
The company’s net loss as on 31st December 2019 stood at approximately Rs 185 crore, bringing the loss down by 52% as compared to last year. The company expressed confidence that its annual revenue will stand approximately at Rs 350 by end of the current financial year.
This would be an increase of approximately 44% compared to the last financial year. According to reports, the company is also planning to spin off its logistic business in order to streamline its balance sheet further.
