Indian online furniture marketplace Pepperfry has secured Rs350m ($6.8m) as fresh funding from venture debt and lending platform InnoVen Capital.

This is the third investment from InnoVen Capital in the Mumbai-based online furniture since 2017.

Pepperfry CFO Neelesh Talathi said: “Our business has seen strong momentum through Covid and we continue to make good progress towards achieving profitability and managing cash flows.

“The funds will be used to increase our footprint across the country and capitalise us even beyond achieving profitability.”

The online marketplace helps thousands of merchants sell furniture to millions of customers across India and in overseas markets.

InnoVen Capital India senior director Sameer Mansukhani said: “We have seen Pepperfry grow and emerge as a category leader while adding new capabilities and product offerings on its platform.”

He added: “They have built a strong brand and this investment reaffirms our commitment to back high performing portfolio companies across their life cycle.”

The online marketplace intends to launch 20 franchisee-owned and franchisee-operated (FOFO) experience Studios across Tier-2 and -3 cities in India in 2021.

As per regulatory filings, Pepperfry cut down its losses by 33% to Rs1.22bn ($22.5m) in the financial year 2020 from Rs1.83bn ($33.9m) in 2019.

Its revenue also jumped up by 26% to Rs2.60bn ($48.1m), operations contributing Rs2.46bn ($45.5m).

In 2020, Urban Ladder, Pepperfry’s rival, sold 94%  of its stake to Reliance Retail for $33.7m.