Purplle, an online cosmetics retailer, raised $1.1 billion in funding, becoming India’s second billion-dollar company this week, despite negative investor sentiment toward entrepreneurs.
According to a statement from the company, Paramark Ventures of South Korea, as well as current backers Blume Ventures, Kedaara, and billionaire Azim Premji’s Premji Invest, raised $33 million in Series E funding.
Purplle, which is backed by Goldman Sachs Group Inc., is a major competitor to Nykaa, whose parent company, FSN E-Commerce Ventures Ltd., made one of India’s most successful market debuts just before global investment conditions soured. Nykaa is currently worth $8.7 billion.
“Consumer products makers may be seeing inflationary pressures, but Purplle continues to clock 70% year-on-year volume growth”. Co-founder Manish Taneja said in an interview, without specifying timeframes. “Innovation in the beauty market is digital-first.”
India now has over a hundred unicorns. Physicswallah, an edtech startup, raised $100 million this week from investors including WestBridge Capital and GSV Ventures at a valuation of $1.1 billion.
Purplle raised $215 million
It has raised $215 million in total funding and has plans to use the new funds to increase technology investments, develop private labels, and strengthen its product.
Purplle, formally known as Manash Lifestyle Pvt was founded in 2012. Moreover, by Taneja, Rahul Dash, and Suyash Katyayani. Who are three Indian Institute of Technology engineers. In the fiscal year ending March 31, it handled $180 million in gross merchandise value. Lest, offering 60,000 beauty and personal care products and accessories from over 1,000 brands on its website and app.
Since the outbreak of the pandemic. Further, niche players in the beauty, fashion, grocery, and other industries have seen rapid growth in online sales. Beauty product manufacturers, in particular, have seen rapid growth by targeting young consumers. Brick-and-mortar retailers underserve the beauty and wellness category, creating opportunities for internet-based startups like Purplle.
Purplle caters to middle-class buyers from smaller Indian towns looking for a good deal. It, too, sells its own products under a private label, as does Nykaa. Indian consumers are increasingly drawn to these newer, lower-cost brands, many of which promote chemical-free products. However, the market is heating up, with new players such as MyGlamm. Which is backed by Amazon.com Inc., entering the fray.