Billionaire Ranjan Pai to Invest in Beauty Company Purplle
- ByStartupStory | October 7, 2023
Billionaire investor Ranjan Pai is reportedly poised to make a significant investment in Purplle, an online beauty and personal care product retailer. According to sources, Pai is set to acquire JSW Ventures’ shares in Purplle for an estimated sum of Rs 60-70 crore.
This development marks the second instance of JSW Ventures divesting shares in Purplle within the span of five months. In May, JSW Ventures completed a partial stake sale to the Abu Dhabi Investment Authority (ADIA), realizing a remarkable 18X return on its initial investment.
As of July, JSW Ventures held a 2.8 percent stake in Purplle, as reported by Tracxn, a private markets data provider.
While JSW Ventures declined to comment on the matter, both Purplle and Ranjan Pai did not respond to Moneycontrol’s email inquiries regarding further details of the investment round.
The previous secondary transaction in May was executed at a valuation of $1.1 billion. However, the valuation for the current investment round remains undisclosed.
This investment signifies the latest addition to a series of startup investments made by Ranjan Pai, a seasoned entrepreneur and investor. Recently, he divested a controlling stake in Manipal Hospitals to Singapore’s Temasek in what stands as the largest deal ever executed by a private equity fund in India’s healthcare sector. Additionally, Pai oversees the Manipal group of educational institutions.
In recent months, Pai has emerged as an active angel investor, acquiring stakes in various startups, including Byju’s in the edtech sector, FirstCry in children’s products, and BlueStone in the jewelry industry, among others.
In this secondary market transaction, Ranjan Pai reportedly paid Rs 60-70 crore to JSW Ventures, becoming a shareholder in the Mumbai-based company.
Purplle had previously secured $40-$50 million in funding in May. Alongside the secondary market transaction with ADIA, the company also raised a smaller primary component from South Korea’s Paramark Ventures, an existing investor.
The capital infusion was earmarked for expanding Purplle’s offline presence by opening additional stores and fortifying its online footprint.
This strategic move comes at a time when an increasing number of online-only startups are embracing the omnichannel approach. This strategy aims to diversify revenue streams, reduce customer acquisition costs (CACs), and sustain growth, particularly after a significant surge during the Covid-19 pandemic.
Founded in 2012 by Manish Taneja and Rahul Dash, Purplle operates an e-commerce platform specializing in beauty and personal care products. The company competes with established players like Nykaa, Myntra, and Flipkart in the fiercely competitive Indian market.
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In its journey to compete with industry giants, Purplle has successfully raised approximately $450 million in funding from prominent investors such as Premji Invest, Blume Ventures, Kedaara Capital, Goldman Sachs, JSW Ventures, and others. This substantial investment has attributed a valuation of $1.1 billion to the company.
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