Purplle Secures $50-60 Million Funding from ADIA at Steady Valuation
- ByStartupStory | May 24, 2023
Purplle, the ecommerce unicorn, secures $50-60 million in funding from Abu Dhabi Investment Authority (ADIA), as reported. According to sources mentioned by Moneycontrol, the funding comprises a combination of primary and secondary investments, with JSW Ventures, an early investor in the direct-to-consumer (D2C) startup, partially exiting. The funding round values Purplle at $1.1 billion, which matches the valuation from June last year when Paramak Ventures invested $33 million in the Series E funding round.
ADIA’s investment in Purplle extends the Series E round mentioned earlier, with the sovereign fund acquiring a portion of JSW’s stake. Notably, ADIA is also making a minor primary investment in Purplle. The company has plans to expand its presence by venturing into physical stores to establish an omnichannel approach, alongside pursuing brand acquisitions. With the latest funding round included, Purplle has successfully raised approximately $265 million in funding from notable investors like Premji Invest, Sequoia Capital India, Goldman Sachs, and Verlinvest.
Established in 2012 by Manish Taneja and Rahul Dash, Purplle is a platform that specializes in providing a wide range of beauty products and appliances. It serves as a host to numerous direct-to-consumer (D2C) brands, including popular names such as Plum, WOW Skin Science, mCaffeine, Maybelline, and SUGAR Cosmetics, among many others.
Purplle boasts an extensive selection of products, with over 1,000 brands and a catalog of over 60,000 items available on its platform. The company also prides itself on having a user base of 7 million individuals.
Based on regulatory filings, Purplle witnessed substantial growth in its revenue from operations in FY22, reaching INR 219.88 Crore. This marked a significant increase of 72% compared to the INR 128.15 Crore recorded in the previous fiscal year. However, the company experienced widening losses in FY22, with a reported figure of INR 203.63 Crore, compared to INR 52.18 Crore in the previous year.
In December 2021, Purplle made an acquisition of Faces Canada, a renowned cosmetics and skincare brand. This strategic move was aimed at expanding the range of private labels available on Purplle’s platform. The online beauty market, traditionally dominated by multinational corporations, has witnessed a surge in funding for startups like The Good Glamm Group, SUGAR Cosmetics, and Mamaearth over the past 24-36 months.
According to reports, the ecommerce market in India is projected to grow at a compound annual growth rate (CAGR) of 19% and reach a substantial size of $400 billion by 2030. Among the various segments within ecommerce, the beauty and personal care sector is expected to experience the fastest growth.
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