Amid Nykaa’s bumper IPO, rival Purplle has raised a large funding round with plans to retain 70-80 percent annual growth rate.
Beauty products platform Purplle said on October 29 that it has raised $75 million, led by private equity firm Kedaara Capital, at a valuation of about $600 million, nearly six-fold from two years ago, as the COVID-19 pandemic has accelerated digital adoption and brought new customers online.
Moneycontrol first reported about the deal on September 13. Purplle will use the money to grow its business, which currently has an annualised revenue of Rs 750 crore (monthly revenue times 12), with the last three months of the calendar year bringing over 35 percent of its annual revenue, CEO Manish Taneja said.
Founded by Manish Taneja and Rahul Dash in 2012, Purplle offers makeup, skincare, hair care and other beauty and personal care products by aggregating brands such as L’Oreal, Colorbar and Mamaearth on its platform.
Purplle also has its own brands such as NYBae and Good Vibes, which contribute to about a third of its revenue.
Its other investors include Sequoia India, Verlinvest, Blume Ventures and JSW Ventures.
Purplle plans to build a house of beauty and personal care brands, both by incubating and acquiring smaller startups. Acquisitions have become a key part of new-age brands’ strategy, as they use abundant capital in the market to consolidate their position and try newer sub segments.
In fact, e-commerce roll-up companies, modelled around US-based Thrasio, operate purely to acquire other brands – a theme that has seen hundreds of millions poured into companies this year at aggressive valuations, making it India’s hottest startup space virtually overnight.
“We are growing 70-80 percent year-on-year and want to continue that. We are looking for acquisitions, both brands as well as content firms, but are very selective, and fitting in with our culture is paramount,” Taneja said.
Content acquisitions are also relatively new to the industry, as online retailers are now counting on consumers to interact with online influencers, take their recommendations, and eventually move to the e-commerce platform which these influencers recommend, among other things.
Purplle’s latest deal also comes on the heels of larger rival Nykaa’s bumper stock market debut, listing at a valuation of over $7 billion while being valued at about $3 billion barely six months back. Purplle aims to be a Rs 3,000-crore brand in the next few years, Taneja told Moneycontrol in a detailed interview earlier. “Led by an innovative, passionate and strong execution focused team, the company has demonstrated market leading growth and continues to build a unique platform focused on the ethos of democratising beauty and personal care across India. We believe Purplle offers a unique value proposition and a superior customer experience and will continue to have strong tailwinds for a long time,” Sunish Sharma, Co-CEO and Managing Partner at Kedaara, said.
