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

Manish Taneja, Co-founder & CEO, Purplle.com
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.
Saritha Rai | Bloomberg
2 min read Last Updated : Jun 09 2022 | 2:16 PM IST
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 Goldman 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.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Purplle.comGoldmanunicorn companies

Next Story