Nykaa-rival Purplle becomes India's 102nd unicorn with latest $33mn fundraise
Online cosmetic products start-up Purplle has joined the coveted unicorn club. In its Series E funding led by Paramark Ventures, the Mumbai-based company has raised $33 million at a $1.1 billion valuation. Purplle becomes the 102nd unicorn in India and the second start-up to join the club this week after Physics Wallah. The company is backed by Goldman Sachs and JSW Ventures, among others.
Why does this story matter?
- In May, India saw a single unicorn. It was not surprising as start-up funding had slowed down. Fast forward to June and we have two unicorns within a week: Physics Wallah and Purplle.
- Beauty e-tailers are receiving good response in India. Nykaa had a bumper IPO listing. Sugar Cosmetics has just raised $50 million in Series D funding and now, Purplle gains unicorn status.
Purplle has raised $215mn in equity funding to date
Purplle was founded in 2012 by Manish Taneja and Rahul Dash. The company's Series E funding round was led by Paramark Ventures and involved existing investors Premji Invest, Blume Ventures, and Kedaraa Capital. In the Series D round of funding, the firm raised $140 million from Premji Invest and Kedaraa Capital. So far, Purplle has raised $215 million in equity funding.
New funding will be used to scale private brands: CEO
In India, Purplle competes largely with Nykaa. According to CEO Taneja, "The infusion is an opportunity to further our mission of building the beauty industry in India with technological investments, scaling of our private brands, and industry-first innovations." Like Nykaa, Purplle too sells products under its private brands. The company has seven million monthly active users and over 1,000 brands, including five private labels.
Purplle handled $180 million worth gross merchandise last year
In the financial year ended in March, Purplle handled gross merchandise worth $180 million. This included 60,000 beauty and personal care products and accessories. According to Taneja, the company has clocked 70% year-over-year volume growth despite the inflationary pressure on the consumer product market. Purplle caters to middle-class buyers who look for value and has managed to grow through its aggressive pricing.