Purplle Seeks $100 Mn Investment From ADIA, Plans More Offline Stores

Beauty ecommerce marketplace Purplle is looking to launch more offline stores this year, besides pursuing an initial discussion with Abu Dhabi Investment Authority (ADIA) for a $100 Mn investment. 

This infusion is primarily expected to occur through a secondary transaction in which some early investors would exit, Mint reported, citing people closer to the matter.

As per the report, the valuation that Purplle is seeking is currently undisclosed. The fundraise is expected to take place in the coming months and may be a part of the company’s pre-IPO round.

Purplle plans to tap the public markets between the second half of next year and early 2026, CEO Manish Taneja told Mint.

In May last year, ADIA invested $50-60 Mn in Purplle at a $1.1 Bn valuation, which was the same valuation after it raised $33 Mn from Paramark Ventures in June 2022.

According to data from Tracxn, the company has raised $387 Mn across 16 rounds.

Other investors in Purplle include Peak XV Partners, Blume Ventures, and Premji Invest.

The company’s offline push is due to increased spending on beauty products and a growing preference for hybrid shopping, Taneja added. 

He further said that the company has just two offline stores, and plans to open 5-10 more in the next few months.

In the last two years, consumers have shifted towards offline shopping as they return to pre-pandemic routines. This trend has led online beauty and personal care companies like Nykaa, Mamaearth, and now Purplle to consider expanding their offline presence.

In February, Mamaearth’s cofounder Ghazal Alagh announced plans to expand its omni-channel distribution to 17,000 retail touchpoints, marking a 37% growth from the previous year. 

In Q3 FY24, the startup expanded its offline presence, reaching 177,366 FMCG retail outlets in India and adding around 8,000 more stores.

Additionally, the company has formed partnerships with Purplle and others to cater to tier-2 and tier-3 segments.

Meanwhile, Nykaa’s store count increased to about 150 as of FY23 from 72 stores two years prior, as per media reports. However, Purplle will maintain its focus on online operations, which currently contribute to about 99% of its revenue, Taneja told Mint. Taneja added that the initiation of their stores is likely at an experimental stage, with plans to evaluate its performance over time.