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Purplle Picks Up $50-60 Mn From ADIA At Flat Valuation

Purplle Picks Up $50-60 Mn Funding From ADIA At Flat Valuation
SUMMARY

The funding round is a mix of primary and secondary investment as JSW Ventures is partially exiting the ecommerce unicorn

The round values Purplle at $1.1 Bn, the same as last June when Paramak Ventures invested $33 Mn

In FY22, Purplle’s losses widened to INR 203.63 Cr from INR 52.18 Cr in the previous year as its revenue from operations reached INR 220 Cr

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Ecommerce unicorn Purplle has reportedly raised $50-60 Mn in funding from the sovereign fund, Abu Dhabi Investment Authority (ADIA).

Per people cited by Moneycontrol, the funding round is a mix of primary and secondary investment as JSW Ventures, an early investor in the D2C startup, has partially exited. The round is at a valuation of $1.1 Bn, the same as last June when Paramak Ventures invested $33 Mn in its Series E funding round.

The ADIA investment is an extension to the aforementioned Series E round, and the Emirati sovereign fund has picked up a part of JSW’s stake. Incidentally, ADIA is also making a small primary investment in Purplle.

Further, Purplle is looking to expand its physical footprint to go omnichannel, while also aiming to acquire a couple of brands in the process. Including the latest funding round, Purplle has raised around $265 Mn in funding from investors such as Premji Invest, Sequoia Capital India, Goldman Sachs and Verlinvest.

Founded in 2012 by Manish Taneja and Rahul Dash, Purplle offers beauty-oriented products and appliances. It hosts several D2C brands on its platform including Plum, WOW Skin Science, mCaffeine, Maybelline and SUGAR Cosmetics, among others.

In total, the unicorn claims to have more than 1,000 brands and over 60,000 products listed on its platform. It also claims to have 7 Mn users.

In FY22, Purplle saw its revenue from operations grow INR 219.88 Cr in FY22, up 72% from INR 128.15 Cr a year earlier, its regulatory filings show. Losses widened to INR 203.63 Cr in FY22 from INR 52.18 Cr in the previous year.

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 including The Good Glamm Group, SUGAR Cosmetics, and Mamaearth raise substantial funds in the last 24-36 months.

As per an Inc42 report, the ecommerce market in the country is estimated to grow at 19% CAGR and reach a size of $400 Bn by 2030. The beauty and personal care segment is expected to see the fastest growth in the ecommerce sector.

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