Home decor site Pepperfry has raised $8 million in funding from existing investor Norwest Venture Partners (NVP). The company states that the funds raised will be used to widen its merchant reach, expand fulfillment operations and invest in brand.
The company had previously raised $5 million from Norwest Venture Partners even before the site was launched. The current investment brings the total amount of funding raised by Pepperfry to $13 million.
Pepperfry was founded by former-eBay India Country Manager, Ambareesh Murty and one of his former colleagues at eBay, Ashish Shah. In February 2013, Nextbigwhat had reported that NVP was looking to merge Fashionandyou.com and Pepperfry and bring Ambareesh Murthy to lead the firm. However, with the current investment that’s highly unlikely.
While Pepperfry was launched as a multi-product ecommerce site, it pivoted to a managed marketplace model by late 2012. It claims that it works with nearly a thousand merchant partners to sell more than 30,000 unique products in Furniture, Home Décor, Furnishings, Kitchen & Dining, Housekeeping, Fitness, Leisure and Pet Supplies.
VC’s Are Picking Their Bets
It appears that VCs are being selective about which companies to back, some sites are being funded while others with common investors are being shut down or merged. In March 2013, Online fashion and beauty retailer Urban Touch, which was acquired by FashionAndYou.com last August for a reported $30 million, has shut shop.
Online private labels Zovi and Inkfruit had also merged last month and the joint entity had raised $10 million funding from SAIF Partners and Tiger Global. Hushbabies.com, a baby care product company which is run by Lapis Marketing Pvt Ltd, acquired MangoStreet.com, an eStore for kids’ product to shut it down. Similarly, Flipkart closed down Letsbuy.com, the electronics and gadgets focused ecommerce store, just three months after the acquisition. Snapdeal.com shut down Esportsbuy.com an eCommerce company just two months after the acquisition. Flipkart and Snapdeal integrated some of Letsbuy and Esportsbuy’s products respectively into its own catalog.
Other Developments in eCommerce Space
Earlier today we reported that Snapdeal.com had raised $50 million from eBay and its existing investors. Ladyblush, a women centric ecommerce had raised undisclosed amount of seed funding from Bangkok based VC Fund, Alpha Founders, and a few independent investors.
HealthKart, an online health care company, had raised $14 million in a Series B funding round from Sequoia Capital and Intel Capital. In March 2012, SkoolShop, an ecommerce site run by Occasion Kommerce Pvt. Ltd., had raised funding in a Series A round from Blume Ventures and angel investors including Sunil Kalra, Srikant Shastri, Vikas Choudhary and Puneet Deora.