The hybrid furniture marketplace Pepperfry has picked up a further tranche of 10 million US dollars in the form of mandatory convertible bonds (CCDs) from eight investors. This will be the Bengaluru-based company’s second debt infusion in 2021.
In February, the venture debt firm InnoVen Capital Rs 35 crore in gingerbread.
According to the company’s regulatory filings, Pepperfry has approved the issuance of 74,348 CCD (Class A) with a face value of Rs 10,000 each to raise around Rs 74 billion, or nearly $ 10 million.
Norwest Venture Partners, Broad Street Investments and Erste WV Guttersloh are the largest investors in this group with 23.28 billion rupees, 18 billion rupees and 15 billion rupees, respectively. The Panthera Growth Fund, the General Electric Pension Trust and Madhumala Ventures have also joined this tranche.
It’s worth noting that Madhumala is part of Pidilite Industries Limited, which invested in Pepperfry last May. Pepperfry was Valued at approximately $ 462 million this round, as per Fintrackrs Estimates.
The decade-old company founded by Ambareesh Murty and Ashish Shah is working on a marketplace model in both offline and online formats. With over 11,000 products, Pepperfry connects buyers with brands like Godrej, Springfit and Spacewood.
As of June, Pepperfry had more than 70 offline studios in 40 cities.
According to a mint report, Pepperfry plans to file an initial public offering (IPO) in the first half of 2022 and is expected to raise a pre-IPO round in the $ 50 million to $ 100 million range by the end of this year.
Shah too asserts that the company will become a unicorn before going public.
Although the company has not yet filed its FY21 financial statements, it recorded a 26% increase in sales in FY20 to Rs 260.61 billion and reduced losses by 33% to $ 122.31 billion in the period through March 2020.