100 Purplle has secured $33 million in a new funding round.
With this, the online cosmetics retailer became the latest unicorn in India.
Mumbai-based online cosmetics retailer, Purplle, secured $1.1 billion in funding, becoming the second billion-dollar firm to be founded in India this week, despite negative investor attitude toward startups.
The startup acquired $33 million in Series E funding from South Korea’s Paramark Ventures, as well as current investors Blume Ventures, Kedaara, and billionaire Azim Premji’s Premji Invest.
Purplle, which is backed by Goldman Sachs Group Inc., is a major competitor to Nykaa, whose parent company, FSN E-Commerce Ventures Ltd., had one of India’s most successful market debuts right before global investment circumstances soured.Nykaa is presently worth $8.7 billion.
India currently boasts over a hundred unicorns. Physicswallah, an edtech business, raised $100 million last week from investors including WestBridge Capital and GSV Ventures at a valuation of $1.1 billion.
Purplle, which has raised $215 million in total funding, plans to utilize the fresh funds to further technical expenditures, establish private labels, and refine its product.
Purplle, originally known as Manash Lifestyle Pvt, was founded in 2012 by three Indian Institute of Technology engineers – Taneja, Suyash Katyayani, and Rahul Dash. In the fiscal year ended March 31, it handled $180 million in gross retail value, selling 60,000 beauty and personal care goods and accessories from over 1,000 brands on its website and app.
Since the outbreak of Covid-19, niche businesses in the beauty, fashion, groceries, and other industries have seen fast rise in online sales. Beauty product manufacturers, in particular, have witnessed rapid development by targeting youthful consumers. Brick-and-mortar stores underserve the beauty and wellness market, creating potential for internet-based firms like Purplle.
Purplle caters to middle-class consumers from minor Indian towns looking for a good deal.
It, too, distributes its own items under a private label, as does Nykaa. Indian customers are increasingly drawn to these newer, lower-cost companies, many of which promote chemical-free products. However, the industry is heating up, with new companies such as MyGlamm, which is funded by Amazon.com Inc., entering the fray.