In a move signaling a “structural reset” for Indian vertical e-commerce, Pepperfry officially closed a fresh funding round of ₹158.4 crore (approximately $17.6–$18 million) on February 14, 2026. The round was led by Morde Foods and SageOne Investments, with participation from over 50 other investors, including Newage Global Ventures and Indian cricketer Shreyas Iyer.
The capital infusion comes at a steep cost: the deal reportedly values Pepperfry at ₹1,661 crore ($185 million)—a 44% drop from its previous valuation of ₹2,979 crore ($330 million) set in June 2025.
Funding Breakdown and Investors
The round is a mix of strategic corporate investment and a large pool of angel participants.
| Investor | Contribution |
| Morde Foods | ₹25 Crore (Lead) |
| SageOne Investments | ₹20 Crore |
| Newage Global Ventures | ₹14.8 Crore |
| Angel Investors | ~₹23.2 Crore (led by Sidharth Iyer & Vikas Arora) |
| Others | ~₹75.4 Crore (including Shreyas Iyer & 48 others) |
Status of Funds: Regulatory filings from the Registrar of Companies (RoC) indicate that the company has already received ₹105 crore ($11.7 million) of the total amount, with the remaining balance expected shortly.
The Context: A Vertical E-Commerce Struggle
The down round follows a challenging two-year period for the furniture marketplace. The valuation cut is viewed by analysts as a “balance-sheet cleanup” ahead of potential consolidation.
- Revenue Compression: Pepperfry’s operating revenue fell 14% to ₹163 crore in FY25, down from ₹189 crore in FY24 and ₹272 crore in FY23.
- Loss Reduction: On a positive note, the company narrowed its net loss by 27% to ₹85 crore in FY25 through aggressive cost-cutting, including a reduction in headcount and marketing spends.
- Competition: Standalone vertical players are facing a “conglomerate squeeze” from IKEA and Reliance (Urban Ladder), alongside horizontal giants like Amazon and Flipkart that can subsidize furniture logistics with other profitable segments.
Strategic Shifts: From IPO to Survival
The management team, now led by CEO Ashish Shah following the 2023 passing of co-founder Ambareesh Murty, has shifted focus from immediate IPO ambitions to long-term sustainability.
- Home Decor Pivot: The company is diversifying its portfolio by incorporating several direct-to-consumer (D2C) brands and focusing heavily on the higher-margin home decor segment.
- Omnichannel Strength: Despite the financial hurdles, Pepperfry maintains a robust physical presence with over 200 retail studios across 100+ cities.
- TCC Concept Deal: In early 2026, Pidilite Industries transferred its entire stake in Pepperfry to TCC Concept Ltd in a 100% share-swap deal, further signaling a transition in the company’s core ownership and control.
“The down round is a verdict. It’s no longer about growth at any cost, but proving that a standalone vertical furniture brand can achieve generative growth in a market dominated by conglomerates.” — Market Analyst.
