Pepperfry, has got a new CEO, Ashish Shah to lead the next phase of India’s premier tech-driven furniture retail firm growth. The firm has secured $23 million in a recent funding round, marking a significant financial milestone for the company.
Shah, who previously held the position of Chief Operating Officer (COO) at Pepperfry, was responsible for overseeing operations, category management, product development, and the omnichannel business. The company praised his instrumental role in crafting Pepperfry’s customer-centric strategy, strengthening the supply chain, and achieving operational excellence.
This development follows the untimely demise of former CEO Ambareesh Murty, and as a part of its strategic restructuring, the company has elevated Co-founder Ashish Shah to the position of Chief Executive Officer (CEO).
Ambareesh Murty, whose visionary leadership played a pivotal role in shaping Pepperfry into one of the nation’s largest e-commerce marketplaces for furniture, tragically passed away at the age of 51 due to a cardiac arrest in Leh last month. The news was met with deep sorrow, with Ashish Shah expressing his devastation in a tweet, calling Murty his friend, mentor, brother, and soulmate.
Pepperfry, with a valuation exceeding $460 million, competes with both omnichannel players like Furlenco, Wooden Street, and HomeLane, and online market giants like Amazon and Flipkart.
The $23 million infusion of capital has been sourced from existing shareholders, including institutional investors and family offices. Pepperfry has outlined its plans to utilize these funds to bolster its omnichannel presence, enhance its supply chain infrastructure, and drive innovation in technology. Moreover, the company anticipates that this financial boost will bring it closer to achieving profitability, marking a significant milestone.
Pepperfry Plans IPO
Additionally, Pepperfry is eyeing the possibility of going public, with plans to raise between $250 million to $300 million later this year. This comes after the company previously postponed its initial public offering (IPO) plans due to challenging macroeconomic conditions. As of the fiscal year ending March 2022, Pepperfry reported revenues of Rs 247 crore, while losses widened by 83% to Rs 194 crore during the same period.
Founded in 2012 by Ambareesh Murty and Ashish Shah, Pepperfry initially started as a horizontal online marketplace focusing on fashion and lifestyle. Over time, it has evolved into one of India’s largest tech-driven furniture retail firms, boasting 190 retail studios spread across over 100 cities. The company proudly claims a customer base exceeding 10 million, with retail connections spanning across more than 500 cities.
Throughout its journey, the furniture retailer has attracted significant investments, raising over $230 million from notable backers such as Norwest Venture Partners, Bertelsmann India Investment, Goldman Sachs Investment Partners, and General Electric Pension Trust. The company’s last major funding round took place in February 2020 when it secured $40 million in a Series F funding round.
Ashish Shah, now at the helm as CEO, expressed his commitment to Pepperfry’s mission, stating, “Pepperfry has always been committed to enhancing the way people create homes, and I am honored to lead this incredible team of dedicated individuals who share this passion. The best tribute to Ambareesh will be to build on the foundation laid by us and fortify Pepperfry’s position as India’s leading furniture and home products company.”
Pepperfry’s journey continues as it strives to innovate, expand its reach, and provide quality home products to its ever-growing customer base, all while honoring the memory of its late co-founder, Ambareesh Murty.
