Furniture E-Tailer Pepperfry May Raise $100 Mn from Existing Investors

Private Equity fund of American investment bank, Goldman Sachs, along with Norwest Venture Partners and Bertelsmann India Investments (BII) may invest $100 million in furniture e-tailer Pepperfry, reported ET Tech, citing sources privy to the development. All three investors are already investors in Pepperfry.

The funds raised will help Pepperfry expand its offline presence and diversify to strengthen its position in furniture market which is riding on a wave set off by Global giant like Ikea, a Siss company entered India last year.

Ikea, along with search giant Google, are contemplating to enter Indian e-commerce market as they both are coming up with their own e-commerce stores under their own brand names respectively, to sell their branded products under one roof.

Existing investors of Pepperfry are looking at investing $100 million into the company and according to the report, fresh equity will be issued in the proposed round in which the investors will seek to maintain their level of holdings in the company.

In July 2015, Goldman Sachs, Bertelsmann India Investments and Norwest Venture Partners, have contributed in $100 million Series-D rounding of funding of Pepperfry. This was followed by an additional 210 crore investment in September 2016.

Founded in 2012, by Ambareesh Murty and Ashish Shah, Pepperfry.com has raised a total of about $198 million in funding over 6 rounds. Their latest funding was raised about $34 million in March last year, according to data by Crunchbase. NOtably, in the same month of same year, Pepperfry's rival, Urban Ladder, too had raised $12 million from Kalaari Capital, SAIF Partners, Sequoia Capital and Steadview Capital, in its second internal round of funding.

According to industry estimates, India's online home-furnishing and furniture retail market is expected to cross $1.1 billion in revenue this year, up from about $900 million in 2016.

LetsTransport Raises ₹100 Cr in Series B from Bertelsmann India Investments and Others

Bengaluru-based Diptab Ventures Pvt. Ltd, which operates tech-enabled logistics marketplace for intracity deliveries LetsTransport has raised a total of INR 100 Crores (~ US $14.1 million) from Bertelsmann India Investments, Fosun International & other investors. Currently operational in 7 cities and having expertise across key industries, i.e. fast moving consumer goods (FMCG), eCommerce, retail and logistics, etc. the latest infusion of growth capital will also be used for strengthening technology, adding new industry verticals to lock in marquee clients and for scaling up the company’s operations.

Owing to the fragmented nature of the mini trucks industry in India, Intra-city logistics while on the one hand, it is twice as expensive as it is in other economies for the client, on the other hand, the truck driver community remains one of the most economically backward. This gap is attributed to inefficiencies in the existing ecosystem.

Founded in early 2015, LetsTransport is a technology-enabled managed marketplace which operates on an asset-light model wherein it partners to bring in operational efficiency for truck owners to cater to the within city logistics requirements. Its multimodal network of trucks clubbed with proprietary technology increases utilisation resulting in higher earnings for the trucks and a 30% reduction in distribution cost for the client. The platform offers one of the most reliable & elastic distribution networks that is trusted by marquee clients such as Coca-Cola, Amazon, Metro Cash & Carry, Big Bazaar etc. Letstransport has touched over 20,000 truckers by enabling higher earnings in the seven cities that it operates in—Bengaluru, Delhi, Chennai, Mumbai, Hyderabad, Pune and Vijayawada.

The company counts investors including Rebright Partners, NB Ventures, GMO Venture Partners and Mitsui Sumitomo Insurance Venture Capital amongst others.

Pushkar Singh, CEO & Co-Founder, LetsTransport commented, “We share the same conviction as our investors to establish the largest network of intracity logistics network in a country with high urbanization rate along with a purpose to become the one-stop solution to one of the most oppressed communities – The truck drivers”. He also added, “We envision to create significant value for our clients and drivers, & are aware that the trust placed by them in us is not an entitlement, but something we need to earn, every day. With this infusion we now see ourselves penetrating the market with fantastic products and great solutions, with delighted customers backing up their journey with us. We see ourselves expanding to over 20 cities by the end of the year and our new products will help us in disrupting the industry."

Announcing the investment, Pankaj Makkar, Managing Director at Bertelsmann India Investments said, “Pushkar and his team bring in a rare combination of deep sector expertise, great industry solutions and high entrepreneurial energy. By leveraging technology to solve for fragmentation on the supply-side coupled with strong unit economics, we believe that the Company is strategically placed to capture the pole position in the market. We are excited to partner the Company’s next phase of growth."

LetsTransport, a techno-logistics solution provider precisely working on Intra City last mine logistics, Started back in early 2015 by Pushkar Singh, Sudarshan Ravi & Ankit Parasher, the company is based out of Bengaluru, and the network of the trucks is available in over seven cities and rapidly expanding to others. LetsTransport provides both on-demand and customised attachment solutions for its clients along with value-added services. LetsTransport’s services include screened drivers, audited vehicles, transparent pricing and point-to-point billing. They are working toward turning the logistic sector into a global phenomenon by making this sector smother, tech-enabled, cost-effective and unique

German Media Group Bertelsmann Eye To Invest $200-$250 Mn In Indian Startups In Next 4 Yrs

Bertelsmann, the German media group is looking to invest $200-$250 million in Indian startup ecosystem over the next four years, reports ET. According to the media reports, the media firm targets to invest $50-$60 million each year in India.

Commenting on the development, Pankaj Makkar, MD, Bertelsmann India Investments told ET, “ “We made our first investment in 2013-end in India. If we include the commitments that we have lined up for the next 12 months for deals that we have an outlook for, the deployment would be about $200 million. This is just for our follow-on investments and new deals will be over and above this.”

As per the Makkar, for the firm, its India portfolio gives it an extremely strong internal rate of return (IRR) between 30%-40%. But with only three years of deal-making in the country, its first set of exits is still 12-24 months away.

Three years after it made its first investment in India, Bertelsmann India Investments (BII) has a deployment book of $150 million, having made 30 deals in the country.

A growth stage strategic investment vehicle of Bertelsmann SE & Co KGaA, the company invests a part of the profit of its parent. The fund typically invests in three to four new deals a year starting with Series-B and Series-C levels. According to Makkar, Series B is a great space to be in right now, because there is more demand than supply.

Earlier, the firm has invested in the Indian internet ecosystem include furniture marketplace Pepperfry, Lendingkart, Saavn, and budget hotel chain Treebo which raised Rs 226 crore ($34 million) in its Series-C round last week.

Bertelsmann is also training its focus on fintech and edtech. Education joins healthcare as a sector that investors are slowly warming up to, given its potential to shore up sizeable returns over long periods of time.

As the strategic investment arm of Bertelsmann SE & Co. KGaA, BII however, will not look at media plays for strategic buy-outs from the fund with such initiatives being driven by the parent.

“Yes, Bertelsmann is looking for strategic buyouts. However, it will not get done by the fund. The fund actually invests in areas where we don’t have strategic businesses in the country. From that perspective, this fund is not a strategic acquisition vehicle for the group,” concludes Makkar.

Lendingkart Group Raises $32M in Series B Funding from BII, Darrin Capital Management and Existing Investors

Lendingkart Group, India’s leading digital lending platform for SMEs has raised Rs. 205 crores ($32M) in new financing; out of which $ 20 million was raised as equity and $ 12 million as debt. This Series B round was led by Bertelsmann India Investments (BII), with participation from Darrin Capital Management and existing investors – Mayfield India, Saama Capital and India Quotient.

With this new round of funding, the company has raised Rs. 260 crore ($41M) till date. The latest infusion of growth capital will be used by the Lendingkart Group for strengthening its data science capabilities, enhancing its technology platform as well as infrastructure for improved mobile capabilities. Lendingkart Group aims to tap into India’s huge underserved lending market by expanding its footprint further across India. Over the past two years, Lendingkart Group has arranged loans to customers in 135 cities across 22 states, witnessing a 20% month-over-month growth in loan origination.

Founded in 2014, by ex-Banker, ISB Hyderabad alumnus, Harshvardhan Lunia and ex-ISRO scientist, IIM Bangalore alumnus, Mukul Sachan, Lendingkart Group has built a technology platform to service the working capital financing needs of SMEs in India. The company has partnered with leading online marketplaces and various Industry and Trade associations to service the financing needs of both online and offline SMEs.

Harshvardhan Lunia, Co-Founder and CEO, Lendingkart Group said, “Our investors share our vision and have been instrumental in our growth journey. With Bertelsmann onboard, we look forward to leveraging its deep understanding of global financial products as well as Internet Businesses. With Financial Services leaders such as Arvato Financial Solutions as a part of the Group, Bertelsmann has strategic insights of the Fintech space with end to end process knowledge and expertise in digital origination. Bertelsmann brings a fresh perspective on digital distribution and data driven risk assessment which will help us in becoming the leading lending platform for SMEs in India.”

“Customer is at the core of what we do. We believe in providing simple, instant and flexible financing solutions to our borrowers. Using web and smartphones, customers can apply for a loan at their convenience. Our proprietary algorithms use over 2200 variables to assess the applicant’s credit worthiness. With funds being transferred in as less as 24 hours, credit on demand is becoming a reality”, said Lendingkart Group Co-Founder & COO, Mukul Sachan.

Bertelsmann Indian Investments, Managing Director, Pankaj Makkar said, “We are excited to partner with Lendingkart Group to build the next generation lending company in India and we believe lending is a large market which will see a lot of innovation. Lendingkart is a strong example of such innovation where technology and data can provide monetary access to the remote corners of India”

"Lendingkart Group has been very successful in proving that the underbanked SME space is as credit worthy as the over banked enterprise space.” Mayfield Managing Partner, Vikram Godse said.

Ash Lilani, Managing Partner, Saama Capital said, “We have been investors in Lendingkart Group since the seed round and have been extremely pleased at the pace of growth and how quickly it has established itself as the leader in B2B lending to SMEs. The fact that it is one of the few companies that leverages technology to be the true driver for its business has us very excited about the scale and efficiency as it goes to the next phase of growth.”

Avendus Capital was the exclusive financial advisor to this transaction.

Image Source: ShutterStock

Roposo Raises $5M in Series B Round from Bertelsmann India Investments

[caption id="attachment_105375" align="aligncenter" width="703"] Roposo team[/caption]

Roposo, a fashion social network has raised funds worth $5 million from Bertelsmann India Investments (BII), the strategic investment arm of the international media, services and education group. Bertelsmann has the second leg of Series B round. Roposo declared the first leg of Series B in August last year with Tiger Global.

Speaking on the fresh round of funds, Roposo, co-founder, Avinash Saxena said, “Bertelsmann has a proven experience in content, social and commerce. They’ve been early investors in several successful companies across the globe including emerging markets like India, China and Brazil. When we met their team, they had a unique perspective on how they could help Roposo scale. We liked their approach aand are certain that their expertise will help our social network unlock many more opportunities in the days ahead.”

Roposo has announced its plans to leverage the funds raised for strengthening its technology backbone, expanding its team, bolstering the product and enhancing the Roposo community. By augmenting its tech infrastructure, Roposo will be able to add more innovative and engaging features to its already popular fashion social network. The fashion social network may also look at expanding its existing categories and offerings. Bertelsmann will offer guidance on how to scale Roposo to its next level of growth and expansion.

Based out of Gurgaon, Roposo was founded in July 2014 by three IIT Delhi alumni, Mayank Bhangadia, Avinash Saxena (ex-CTO of Zomato) and Kaushal Shubhank. Since then, Roposo’s journey has been dotted by many successes. The company’s total funding amount stands at $21 million from top investors in the country including Bertelsmann India Tiger Global, India Quotient and Flipkart’s CEO Binny Bansal.

Roposo Raises $5M in Series B Round from Bertelsmann India Investments

[caption id="attachment_105375" align="aligncenter" width="703"] Roposo team[/caption]

Roposo, a fashion social network has raised funds worth $5 million from Bertelsmann India Investments (BII), the strategic investment arm of the international media, services and education group. Bertelsmann has the second leg of Series B round. Roposo declared the first leg of Series B in August last year with Tiger Global.

Speaking on the fresh round of funds, Roposo, co-founder, Avinash Saxena said, “Bertelsmann has a proven experience in content, social and commerce. They’ve been early investors in several successful companies across the globe including emerging markets like India, China and Brazil. When we met their team, they had a unique perspective on how they could help Roposo scale. We liked their approach aand are certain that their expertise will help our social network unlock many more opportunities in the days ahead.”

Roposo has announced its plans to leverage the funds raised for strengthening its technology backbone, expanding its team, bolstering the product and enhancing the Roposo community. By augmenting its tech infrastructure, Roposo will be able to add more innovative and engaging features to its already popular fashion social network. The fashion social network may also look at expanding its existing categories and offerings. Bertelsmann will offer guidance on how to scale Roposo to its next level of growth and expansion.

Based out of Gurgaon, Roposo was founded in July 2014 by three IIT Delhi alumni, Mayank Bhangadia, Avinash Saxena (ex-CTO of Zomato) and Kaushal Shubhank. Since then, Roposo’s journey has been dotted by many successes. The company’s total funding amount stands at $21 million from top investors in the country including Bertelsmann India Tiger Global, India Quotient and Flipkart’s CEO Binny Bansal.

Pepperfry.com raises $15mn funding from Bertelsmann India & NVP

Mumbai based online furniture and home products marketplace Pepperfry.com has raised $15 million of funding led by Bertelsmann India Investments (BII) and its existing investor Norwest Venture Partners (NVP).

Bertelsmann India Investments (BII), the strategic investment arm of the international media company Bertelsmann in India, BII concentrates on early stage investments into growing companies in the digital media landscape. NVP on other hand is Silicon Valley-based investment firm and the very first series-A funding of Pepperfry in 2011 was $5 million from Norwest Venture Partners only.

Pepperfry.com was founded in July 2011 by twi ex-eBay employees Ambareesh Murty and Ashish Shah. Pepperfry had earlier raised $13 million from NVP in previous rounds of funding.

Ambareesh Murty, co-founder & CEO of Pepperfry.com said, "Our vision is to be India’s one stop shop for Furniture and Home products and we have focused on leveraging our in-depth category expertise to establish the merchandising and supply chain infrastructure required to fulfill this vision."

Pepperfry started its business operations in January 2012 to sell furniture and home merchandize online and today the company offer more than 45,000 products to across various categories such as - Furniture, Home Décor, Furnishings, Kitchen and Pet Supplies.

Pepperfry was the recipient of the '2012 Red Herring Asia Top 100' award which honours the most promising private technology ventures from Asia.

The Pepperfry investment came just a day after when Flipkart raised $210 million of funding from DST global. Funding for the e-commerce companies in India are pouring in from across the globe however vertical e-commerce portals like Pepperfry.com also catching up the funding pace with mainstream players.