Beauty products platform Purplle announced on October 29 that it has raised $75 million, directed by private equity firm Kedaara Capital, at a valuation of around $600 million, approximately six-fold from two years ago, as the COVID-19 pandemic has quickened digital adoption and made new customers online. Purplle will utilise the capital to grow its business, which currently has an annualised revenue of Rs 750 crore. The past three months of the calendar year bring over 35 percent of its annual revenue, CEO Manish Taneja told.
Established by Manish Taneja and Rahul Dash in 2012, Purplle gives makeup, skincare, hair care and other beauty and personal care goods by aggregating labels 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 nearly a third of its revenue. Its other investors involve Sequoia India, Verlinvest, Blume Ventures and JSW Ventures.
Purplle intends to build a beauty and personal care brands hub by incubating and acquiring smaller startups. Acquisitions have become a crucial part of new-age brands’ approach, as they use sufficient capital in the market to strengthen their position and try fresher sub-segments.
In fact, e-commerce roll-up businesses, shaped around US-based Thrasio, operate plainly to acquire other brands – a theme that has seen hundreds of millions poured into organisations 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 spoke.
Content acquisitions are also comparatively new to the business, as online retailers are now counting on consumers to communicate with online influencers, take their suggestions, and ultimately move to the e-commerce platform which these influencers promote, with other stuff.
Purplle’s newest deal also comes on the heels of bigger rival Nykaa’s bumper stock market introduction, listing at a valuation of above $7 billion while being valued at nearly $3 billion barely six months back. Purplle strives to be a Rs 3,000-crore brand in the next several years, Taneja shared.
“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, stated.