Monday, July 4, 2022
HomeMarketsGoldman-backed beauty startup Purplle becomes India's newest unicorn

Goldman-backed beauty startup Purplle becomes India’s newest unicorn

Online cosmetics retailer Purplle raised capital at a $1.1 billion valuation, becoming the second billion-dollar company to be created in India this week despite souring investor sentiment on startups.

The Mumbai-based firm raised $33 million of Series E financing from South Korea’s Paramark Ventures as well as existing backers Blume Ventures, Kedaara and billionaire Azim Premji’s Premji Invest, the company said in a statement.

Backed by Sachs Group Inc., Purplle is a prominent rival of Nykaa, whose parent FSN E-Commerce Ventures Ltd. pulled off one of India’s most successful market debuts just before global investment conditions tanked. Nykaa is currently valued at $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 100 unicorns. This week, edtech startup Physicswallah raised $100 million from backers including WestBridge Capital and GSV Ventures at a $1.1 billion valuation.

Purplle, which has secured $215 million of total funding, will use the new capital to step up investments in technology, develop its private labels and strengthen its product.

Known formally as Manash Lifestyle Pvt, Purplle was set up in 2012 by Taneja, Rahul Dash and Suyash Katyayani, three engineers from the Indian Institute of Technology. It handled $180 million of gross merchandise value in the year ending March, offering 60,000 beauty and personal care products and accessories from over 1,000 brands on its website and app.

Niche players in beauty, fashion, grocery and other industries have experienced rapid online sales growth since the start of the pandemic. Purveyors of beauty products in particular have seen growth spike by targeting young consumers. The beauty and wellness category is under-served by brick-and-mortar retailers, leaving opportunities for internet-based startups like Purplle.

Purplle targets middle-class buyers from smaller Indian towns who look for value. Like Nykaa, it sells its own products under a private label. Indian consumers are increasingly taking to these newer, aggressively-priced brands, many of which tout chemical-free products. But the market is heating up with new competition emerging from players such as MyGlamm, backed by Amazon.com Inc.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard,

Digital Editor

Source link

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments