Pepperfry is raising Rs 158.4 crore (approximately $17.6 million) in a fresh funding round led by Morde Foods and SageOne Investments, with participation from Newage Global Ventures, F3 Advisors, and over 50 investors, including Indian cricketer Shreyas Iyer. The omnichannel furniture platform continues to attract investor interest even as it navigates slowing growth and valuation pressure.
Funding Details and Investor Participation
According to regulatory filings, Pepperfry’s board approved the issuance of 40,51,174 equity shares at Rs 391 per share to raise the capital. Morde Foods is leading the round with Rs 25 crore, followed by SageOne Investments (Rs 20 crore) and Newage Global Ventures (Rs 14.8 crore). The company has already received Rs 105 crore, with the remaining amount expected soon. Post-allotment, Pepperfry’s valuation is estimated to decline 44% to Rs 1,661 crore from Rs 2,979 crore in its previous round.
Use of Funds and Business Expansion
The fresh capital will be used to expand business operations, support subsidiaries and group entities, and meet working capital requirements. Pepperfry also plans to strengthen its omnichannel presence, which includes both digital platforms and offline retail studios across India.
Business Model and Market Presence
Founded in 2011, Pepperfry operates a marketplace model offering over 10,000 furniture and home products. The Mumbai-based company has built a retail network of more than 200 studios across 100+ cities and partners with brands such as Godrej, Springfit, and Spacewood. It competes with players like Urban Ladder and Wooden Street in India’s growing furniture and home décor segment.
Financial Performance and Market Context
Pepperfry’s operating revenue declined 14% to Rs 163 crore in FY25 from Rs 189 crore in FY24, reflecting continued demand challenges. However, the company reduced its losses by 27% to Rs 85 crore during the same period. With over $275 million raised to date, Pepperfry is now focusing on improving operational efficiency and strengthening its market position amid increasing competition.
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