Beauty start-up Purplle raises $33 mn in funding, gets unicorn status

It is the second Indian startup this week to be valued at more than $1 billion, after edtech firm Physics Wallah.

Online beauty retailer Purplle.com became a unicorn after raising $33 mi­llion in a funding round led by South Korean investor Paramark Ventures.

The fresh round of investment — which also saw participation from existing investors such as Premji Invest, Blume Ventures, and Kedaara — was at a valuation of $1.1 billion, making Purplle the second Indian start-up to join the unicorn club this week after edtech firm PhysicsWallah.

The latest round took the total funding for Purplle to over $215 million. The firm also counts Sequoia Capital and Goldman Sachs among its investors.

Purplle.com had earlier received four rounds of funding from investors closing 2021 with a Series D of $140 million. The funding is expected to help Purplle compete with traditional players and online beauty platforms such as Nykaa, MyGlamm, Myntra and SUGAR Cosmetics.

“We welcome our new investor, Paramark Ventures, and look forward to cross-country synergies,” said Manish Taneja, co-founder and CEO, Purplle. “The infusion is an opportunity to further our mission of building the beauty industry in India with technological investments, scaling of our private brands, and industry-first innovations.”

Over the years, the company has grown rapidly with seven million monthly active users, over 1,000 brands, 60,000 products, and five private direct-to-consumer (DTC) brands. With a robust growth trajectory, Purplle has scaled its annualised gross merchandise value (GMV) to $180 million in FY22.

The firm said it achieved this while making trending beauty products accessible and affordable for every Indian.

“We have been tracking Purplle for several years now,” said Chunsoo Kim, founder and managing partner of Paramark Ventures, adding, “Purplle is addressing the enormous vacuum in the beauty and personal care industry in India in a way that the rising demand from consumers can be best served beyond the limited set of customers in a few major cities.”

Online beauty start-ups have been attracting a lot of investor attention amid the pandemic, as according to data platform Statista, India’s beauty and personal care market, estimated at $25.9 billion in 2020, is projected to reach $32.7 billion by 2023, growing at a compound annual growth rate (CAGR) of 8.1 per cent.

In May, SUGAR Cosmetics — one of India’s largest omnichannel beauty companies — closed a $50-million Series D fundraise led by the Asia fund of L Catterton, the largest global consumer-focused private equity firm. L Catterton’s expertise in building iconic consumer brands across the world and strategic relationship with LVMH (Louis Vuitton owner) will empower SUGAR to embark on its next stage of growth amid the expansion of India’s beauty and personal care market.

In March, Plum, a leading beauty brand, raised $35 million (Rs 270 crore) in a Series C round led by A91 Partners — a leading late stage-focused venture capital fund. The firm said it is 100 per cent vegan, cruelty-free and toxin-free beauty brand. The funding round also saw participation from existing investors Unilever Ventures and Faering Capital.