Leading global investment banking firm, US based Goldman Sachs has made their foray into the Indian etail market and the ecommerce firm Sachs has decided to back is online furniture store, Pepperfry.com.
In a fresh round of funding, Pepperfry has raised $100 million (Rs. 640 crore) from four investors including Goldman Sachs. Other three contributors are Zodius Technology Fund, Bertelsmann India Investments and Norwest Venture Partners.
While speaking about this fresh funding, the online furniture company exclaimed, “This is the largest quantum of investment raised by a sector-focused e-commerce player in India.” The company plans to utilize the money to penetrate Tier-3 and Tier-4 cities, build distribution centres and increase its carpenter & assembly facility network.
In May this year, Ambareesh Murty, CEO and founder of Pepperfry had shared his intentions to turn Pepperfy profitable in the next two years. He had said, “Our investments will go into building a stronger supply chain. Today we are in 200 towns, we expect to be in around 400 towns by March 2016. We also plan to invest heavily in technology and our headcount in those teams will go up significantly. We will invest in marketing through television and open more studios.” And now that they have the money, no better time to put the abovementioned plans in action.
On the other hand Ankur Sahu from Goldman Sachs Asia stated, “Goldman has joined the growing list of world’s most sophisticated investors, from Morgan Stanley to DST Global betting on the market expected to grow to $50 billion by 2020. We have a strong conviction for the theme of domestic consumption growth in India. Through this most recent partnership in Pepperfry.com, we intend to leverage our global expertise in the sector to help create a large, differentiated leader in India’s rapidly-growing ecommerce industry.”
Earlier this year, another player from the online furniture segment, Urban Ladder had secured funding. Fab furnish too has been growing strength to strength. And with Goldman Sachs too putting their faith in the online home decor & furniture segment, looks like good times are ahead for this etail segment.