With the tremendous growth of e-commerce in India Goldman Sachs Group Inc. is betting on Indian shoppers buying their next sofa online. The U.S. investment bank is all set to put a $100 million investment in Pepperfry.com, a top Indian online furniture and home-products marketplace, according to sources.
Indian startups are capturing the attention of global investors who see promise in companies, such as Flipkart Internet Pvt. and Snapdeal.com, capturing market share in e-commerce. Goldman Sachs forecasts rapid growth for India’s e-commerce market as the country catches up with other big economies. The Wall Street bank estimates India’s e-commerce market is $20 billion today, just one-tenth of China’s and a fraction of the U.S. market for online goods.
Pepperfry.com is India’s largest furniture and home online marketplace headquartered in Mumbai. A managed marketplace, Pepperfry is known for its differentiated product range which offers over 80,000+ products across categories like Furniture, Home Décor, Kitchen & Dining, etc.Pepperfry is part of a next generation of Indian e-commerce startups that focus on selling specific product lines to India shoppers, oftentimes manufacturing the products themselves. The company, founded in January 2012, not only markets the products through its site, it also employs carpenters and operates a fleet of over 350 delivery vehicles. Pepperfry plans to use the funds raised from the Goldman Sachs-led investment to expand its delivery fleet, open new distribution centers and expand its assembly services, according to the person.