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Exclusive: Pepperfry to secure fresh funds from existing investors

EntrackrEntrackr · 1m ago
Exclusive: Pepperfry to secure fresh funds from existing investors
Medial

Exclusive: Pepperfry to secure fresh funds from existing investors Omnichannel furniture brand Pepperfry is raising Rs 43.3 crore (approximately $5.1 million) from existing investors including General Electric Pension Fund, Norwest Venture Partners, Goldman Sachs, Panthera Growth Partners, and others. This funding follows its $23 million round raised in September 2023 from the same investors. The Pepperfry’s board passed a resolution to approve the issue of 5,59,463 compulsory convertible preference shares at an issue price of Rs 775 each to raise the aforementioned sum, its regulatory filings accessed from the Registrar of Companies (RoC) show. General Electric will lead the funding with Rs 21.5 crore ($2.5 million) followed by Norwest Venture Partners and Panthera Growth Partners who will infuse Rs 8.52 crore and Rs 6.45 crore, respectively, to increase their stakes in the company. Goldman Sachs, Erste WV Gutersloh GmbH, and Growth Equity Opportunity Fund Cayman Holdings Ltd will cover the rest of the funding amount. According to the filing, the company will utilize the proceeds from this funding for growth, expansion, and general corporate purposes. As per Entrackr estimates, Pepperfry will be valued at Rs 3,120 crore or $367 million (post-allotment). Pepperfry operates on a marketplace model across both online and offline channels. Offering a catalog of over 10,000 products, it connects customers with leading brands like Godrej, Springfit, and Spacewood. The company claims to have a retail presence of more than 200 studios spread across 100+ cities. According to startup data intelligence platform TheKredible, the Mumbai-based company has raised over $270 million to date from investors including Norwest Venture Partners, General Electric, Broad Street Investment, Pidilite, and others. For the fiscal year ending March 2024, Pepperfry’s operating revenue declined 30% to Rs 189 crore while narrowing its losses by over 37% to Rs 117.5 crore during the same period. Pepperfry competes with other heavily funded furniture brands including Reliance-acquired Urban Ladder, which secured over $100 million in funding, and Wooden Street, which raised $77 million funding.

Rentomojo raises $25 Mn led by Edelweiss

EntrackrEntrackr · 1y ago
Rentomojo raises $25 Mn led by Edelweiss
Medial

Rentomojo, a furnishing rental brand that provides furniture, appliances, and fitness categories on a monthly rental basis, has secured an investment of Rs 210 crore (approximately $25 million) in its ongoing Series D and D1 round. The round is led by Edelweiss Discovery Fund Series – I, with participation from existing investor Chiratae Growth Fund, as well as Magnetic, founded by Rajeev Chitrabhanu. The firm last raised Rs 145 crore as a part of Series C round in November 2021. This latest round of funding from investors serves as a launchpad, propelling the company to continue to lead the creation of the appliances and furniture rental category in India, said the company’s founder and CEO Geetansh Bamania. Headquartered in Bengaluru, Rentomojo operates in 16 cities and has served close to 450,000 customers since its inception. The company has also built relationships with most of the prominent lenders across the country to serve the increasing demands of the increasing customer. In addition to its focus on an online channel, Rentomojo has established offline experience centers across all major pin codes of Bengaluru. Rentomojo claims to have been profitable for the last 10 quarters. As per startup data intelligence platform TheKredible, Rentomojo registered a revenue of Rs 121 crore in FY23 compared to Rs 98.6 crore in FY22. During the period, the firm turned profitable with Rs 6.19 crore profit against Rs 13.5 crore loss in the previous fiscal year. It competes with Furlenco, Rentickle, Cityfurnish, and to some extent Pepperfry. In July last year, Sleepwell-parent Sheela Foam signed an agreement to acquire 35% stake in Furlenco. The deal roughly values the Bengaluru-based company at around Rs 857 crore (over $100 million). Pepperfry also raised $23 million in September last year and announced the appointment of new CEO following the demise of the company’s long-time CEO Ambareesh Murthy.

Wakefit targets to raise Rs 1,500-2,000 Cr from IPO: Report

EntrackrEntrackr · 3m ago
Wakefit targets to raise Rs 1,500-2,000 Cr from IPO: Report
Medial

Wakefit targets to raise Rs 1,500-2,000 Cr from IPO: Report Home furniture and sleep solutions company Wakefit has selected three investment banks to help with its plans to go public. According to a Moneycontrol report, the company has chosen Axis Capital, IIFL Capital Services, and Nomura to guide its initial public offering (IPO). Wakefit is expected to file draft papers for the IPO in the coming months. As per the report, the company aims to raise between Rs 1,500 crore and Rs 2,000 crore ($200 million). It has not yet decided how much will be raised through new shares and how much will be sold by current investors. So far, Wakefit has raised more than $100 million (around Rs 850 crore) from investors such as Peak XV Partners, Paramark Ventures from South Korea, and Verlinvest from Europe. Some of these early investors may sell their shares in the IPO. Wakefit started as a mattress company but later began selling other furniture like beds, tables, and chairs. As per TheKredible, Wakefit’s revenue from operations increased by 21% to Rs 986.4 crore in FY24, as compared to Rs 812.6 crore in the previous fiscal year. The firm managed to control its losses by 90% to Rs 15 crore from Rs 145 crore in FY23. Wakefit competes with companies like SleepyCat, Duroflex, Pepperfry, IKEA, and Woodenstreet in India’s furniture and sleep product market.

Pepperfry’s growth woes continue in FY24, losses drop 37.5%

EntrackrEntrackr · 5m ago
Pepperfry’s growth woes continue in FY24, losses drop 37.5%
Medial

Omnichannel furniture brand Pepperfry continues to face growth challenges, marking its second consecutive fiscal year of revenue decline. After a 10% drop in FY23, the Mumbai-based company saw a 30% year-on-year decline in operating revenue in FY24. Pepperfry’s revenue from operations declined to Rs 189 crore in FY24, down from Rs 272 crore in FY23, according to its consolidated financial statement filed with the Registrar of Companies (RoC). Pepperfry primarily earns revenue from marketplace services and product sales. In FY24, revenue from services contributed Rs 169 crore, though it declined 29.9% year-on-year. Meanwhile, income from product sales saw a sharper drop of 50.7%, falling to Rs 15 crore. Other income, including miscellaneous sources, contributed Rs 5 crore in FY24. The company earned an additional Rs 20 crore from interest income, bringing its total income to Rs 209 crore in FY24. On the expenditure side, Pepperfry optimized its costs, resulting in a 31% reduction in total expenses, which fell to Rs 327 crore in FY24. Pepperfry significantly reduced its expenses across multiple categories in FY24. Employee benefit expenses declined by 29.7%, standing at Rs 60.5 crore, while advertising costs were cut by 44.3% to Rs 59 crore. Similarly, transportation expenses dropped 27.8% to Rs 28.5 crore, and the cost of materials saw the sharpest decline, shrinking by 65.8% to Rs 6.5 crore. Additionally, depreciation and amortization expenses decreased by 17.7%, totaling Rs 51 crore for the year. Due to controlled expenses, Pepperfry managed to reduce its losses by 37.5% to Rs 117 crore in FY24 from Rs 188 crore in FY23. Its ROCE and EBITDA Margin stood at -57.94% and -20.79%, respectively. On a unit level, Pepperfry spent Rs 1.73 to earn a rupee of revenue in FY24. The Mumbai-based firm had current assets worth Rs 141 crore in FY24 including Rs 78 crore in cash and bank balance. According to TheKredible, Pepperfry has raised more than $230 million in funding, having Norwest Venture, General Electric, Goldman Sachs and State Street Investments as its lead investors. The firm recently elevated Madhusudan Bihani to the role of chief financial officer (CFO). Pepperfry’s struggles have been well documented, and there certainly doesn’t seem to be any end in sight. The firm has done enough course corrections to come a full circle in some ways, and a breakout looks increasingly difficult. While it must be galling for the firm to see later entrants like Wooden Street do well, one feels it is trapped in its own ideas where it had the conviction to start, but is running out of reasons to consider giving up. It’s not as uncommon as one would imagine, and making the course corrections yet again is a lot more difficult than it seems from the outside. But again, speaking from outside, we believe the marketplace model has very limited utility, and we simply cannot see how it can be a solution to Pepperfry’s journey to become a sustainable business.

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