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Business News/ Companies / News/  ADIA invests $50-60 mn in Purplle at $1.1 bn valuation
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ADIA invests $50-60 mn in Purplle at $1.1 bn valuation

The investment is mostly through secondary transactions as some of Purplle’s early investors decided to exit, the people cited above said on condition of anonymity.

Purplle CEO Manish Taneja (Mint)Premium
Purplle CEO Manish Taneja (Mint)

MUMBAI : Purplle, an online retailer of beauty and personal care products, has raised $50-60 million from Abu Dhabi Investment Authority (ADIA), two people aware of the matter said.

The investment is mostly through secondary transactions as some of Purplle’s early investors decided to exit, the people cited above said on condition of anonymity. The investment was made at a valuation of $1.1 billion, the same as in June 2022 when Paramark Ventures invested $33 million in primary funds, the people added.

There is a small primary element, too, in the latest investment, which the company is looking to use to expand its physical footprint as part of its omnichannel strategy, one of the two people said.

“The company wants to have a phygital (physical plus digital) presence across the key metros and tier I cities and will increase its physical touch points through its private label kiosks," the person said. “It is also looking to acquire a couple of brands to stay in the game," he added.

Most direct-to-consumer companies that started off as online-only stores are looking to expand their footprint to physical touch points, with some looking to acquire brands with large offline footprints. Purplle has raised around $250 million so far, including from Goldman Sachs and Verlinvest.

Founded in 2012 by Manish Taneja and Rahul Dash, Purplle sells a wide range of beauty and personal care (BPC) products. The company says that in FY22, it recorded $180 million in gross merchandise value or the value of goods sold.

The company, which competes with Nykaa, saw its revenue from operations grow 219.88 crore in FY22, up 72% from 128.15 crore a year earlier, its regulatory filings show. Losses widened to 203.63 crore in FY22 from 52.18 crore in the previous year.

“The company has been able to contain its burn and is moving towards turning profitable in the current financial year. The investors are betting big on this emerging category," the second person cited above said. A spokesperson for Purplle did not respond to emailed queries, while an ADIA spokesperson declined to comment.

As on June 2022, Purplle had seven million monthly active users and over 1,000 brands on its platform, including five private labels. Its stronghold is in non-metro cities. It acquired the cosmetics and skincare brand Faces Canada in December 2021 to get more private labels on its platform. The online beauty market, traditionally dominated by large multinational companies, has seen startups like The Good Glamm Group, Sugar Cosmetics, and Mamaearth raise substantial funds in the last 24-36 months.

Market researcher Statista estimates India’s online beauty and personal care market in 2023 at $27.23 billion and expects it to grow annually by 3.38% till 2027.

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ABOUT THE AUTHOR
Sneha Shah
Sneha writes on new economy businesses, private and public marker funding and deals. She writes about startups and the new economy, specifically PE/VC and investment banking.
Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
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Published: 24 May 2023, 12:14 AM IST
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