IPO-linked Pepperfry secures $10 million in debt financing

Hybrid furniture market Pepperfry picked up another $10 million from eight investors in the form of mandatory convertible debentures (CCDs). This will be the Mumbai-based company’s second injection of debt in 2021.

In February, the venture debt company InnoVen Capital had put Rs 35 billion at Pepperfry.

According to the company’s regulatory filings, Pepperfry has approved the issuance of 74,348 CCDs (Series A class) with a face value of Rs 10,000 each to raise around Rs 74 crore or close to $10 million.

Norwest Venture Partners, Broad Street Investments and Erste WV Guttersloh are the biggest investors in this round with Rs 23.28 crore, Rs 18 crore and Rs 15 crore respectively. Panthera Growth Fund, General Electric Pension Trust and Madhumala Ventures also joined this tranche.

It should be noted that Madhumala is part of Pidilite Industries Limited which invested in Pepperfry in May last year. pepperfry was valued at around $462 million in this turn, according to Fintrackr’s estimates.

The decade-old company founded by Ambareesh Murty and Ashish Shah works on a market model in both offline and online formats. With over 11,000 products, Pepperfry connects shoppers with brands like Godrej, Springfit and Spacewood.

As of June, Pepperfry had over 70 offline studios in 40 cities.

According to a currency reportPepperfry plans to file an initial public offering (IPO) in the first half of 2022 and is likely to raise a pre-public round in the range of $50-100 million by the end of this year.

Shah too claims that the company will go unicorn before its IPO.

Although the company has not filed its annual financial statements for FY21, it recorded a 26% increase in revenue to Rs 260.61 crore in FY2020 and managed to reduce the losses of 33% to Rs 122.31 crore in the period ending March 2020.

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