Online beauty products marketplace Purplle, operated by Mumbai-based Manash Lifestyle Pvt Ltd, has raised $65 million as a part of its Series D funding round from Premji Invest, the company said in a statement on Monday.
This investment from Premji Invest takes Purplle’s total Series D fundraise to $140 million. Purplle had raised $75 million in October in a funding round led by private equity (PE) firm Kedaara Capital. Other investors included Sequoia Capital and Blume Ventures.
The latest fundraise by Purplle follows the blockbuster listing of its peer FSN E-Commerce, which owns and operates online beauty and cosmetics retailer Nykaa, on stock exchanges earlier this month. Nykaa’s valuation has almost doubled to $13 billion since its debut on the bourses. Purplle, too, aims to become a multi-billion-dollar company, it said.
Purplle plans to use the funds to expand its product portfolio and drive penetration across the country. The company also is looking to scale up its private brands’ business, and aims to build differentiated beauty brands with entrepreneurs, said Manish Taneja, Co-founder and Chief Executive Officer (CEO), Purplle.
“We will leverage exclusive Indian and international brand partnerships, and fast-track acquisitions. Investments in content and community will be the key focus. We have nurtured some of the sharpest minds and will continue to build talent,” he added.
The company currently claims to have more than a thousand brands and over 50,000 products across categories like make-up, skincare, haircare, personal care, fragrances, and grooming appliances. It doubled its marketing spends in a bid to acquire new customers. Purplle claims that 65-70% of its revenue comes from returning customers. The company’s loyalty programme Elite, makes up one -fourth of the platform’s revenue, the statement said.
The company said that it will continue to invest aggressively in technology advancement by building customised beauty profiles, virtual try-ons and recommendations through virtual beauty advisors. Purplle claims to have increased its gross merchandise value (GMV) by six times over the last three years. The company has an annual revenue run rate of Rs 1,200 crore, the statement said.
For Premji Invest, Purplle’s investment adds to the investment firm’s portfolio of technology companies. In October, Premji Invest invested in Edtech startup Questt. Earlier this month, VCCircle had reported that Premji Invest is in talks to invest in Chennai-based Oro, operated by Orocorp Fintech Pvt Ltd.
“Democratising beauty will continue to be a dominant theme in India, and customers today are looking for products that specifically cater to their skin and personal health, and enhance their beauty,” said Atul Gupta, Partner, Premji Invest. “...we plan will do this by integrating the requirements of the customer through careful analysis of customer usage data with unique and differentiated products and a great customer experience,” Gupta added.
