Purplle backers Blume, Premji Invest double down in ₹1,500 crore funding round; Sharrp joins cap table

Online beauty products retailer Purplle on Monday said it had closed its series F funding round at ₹1,500 crore, with existing investors Blume Ventures and Premji Invest doubling down and new investors including Sharrp Ventures joining its cap table. 

The invesment round was led by Abu Dhabi Investment Authority (ADIA), the company said in a statement. 

Purplle had said in July that it had raised ₹1,000 crore in a funding round led by an arm of ADIA at a valuation of $1.25 billion. That was a slight increase from the valuation the beauty products firm commanded in its funding round in June 2022, in which Paramark Ventures invested $33 million. 

Mint was the first to report on ADIA’s plans to invest in the company through a mix of primary and secondary transactions. 

Also read: Purplle plans offline push, may see $100 mln infusion from ADIA

“Through the application of data-driven insights and the expansion into underserved markets, we seek to support the company in delivering personalized and accessible beauty solutions tailored to the diverse needs of consumers across India,” Sharrp Ventures’ founder Rishabh Mariwala said in the statement on Monday. 

Purplle, which has raised more than $500 million since its inception, is backed by other marquee investors including Kedaara Capital, Peak XV, JSW Ventures, Goldman Sachs, and Verlinvest.

Founded in 2012 by Manish Taneja and Rahul Dash, Purplle sells a wide range of beauty and personal care products, typically catering to households with an annual income of ₹5-30 lakh. 

Most of its target market is in tier-2 and tier-3 towns, and it gets about half its revenue from cities such as Mysore, Coimbatore, Kochi, Ernakulam, Kozhikode and Siliguri.

In FY24, Purplle’s revenue from operations increased to about ₹680 crore from ₹475 crore in the year prior. Its loss narrowed to ₹124 crore from a loss of ₹230 crore in FY23.

Offline expansion

Purplle has benefited from India’s growing young population, higher disposable income, and increased penetration of mobile phones, which fueled online consumption during the height of the pandemic.  

But the company plans to increase its offline presence as consumers seek offline touchpoints for their purchases as they gradually return to their pre-pandemic lifestyles. 

Purplle, which has just two offline stores, plans to open 5-10 more in the next few months, Taneja told Mint in April. 

Purplle’s online platform attracts more than 10 million consumers every month. It has also partnered with third-party brands alongside scaling up its own brands such as Faces Canada, Alps Goodness, Good Vibes, Carmesi and DermDoc.

The company is expected to tap the public markets between the second half of next year and early 2026. 

Also read: Purplle Group raises ₹1,000 crore at $1.25 bn valuation in round led by ADIA as it seeks to open more offline stores

In July, Purplle also announced its largest employee stock ownership plan (ESOP) liquidity programme, and will offer equity worth ₹50 crore to its employees. 

The beauty products platform has granted ESOPs to 320 employees so far, and 85 of them have liquidated ESOPs worth ₹75 crore over three buyback programmes.