Purplle aims for $500 million valuation
As per news source, Purplle, the beauty products platform, is in a discussion phase to raise $50-75 million fund, valuing the company at over $500 million.
Investors like Norwest Venture Partners, Kedaara Capital, Venturi Partners and South Korea’s Mirae are jostling in order to invest in Purplle. As per sources, Sequoia India will double down on its stake. Purplle is still deciding the allocations for investors, they added.
Purplle, pitched earlier to investors and executives as a ‘Nykaa for tier 2-3 cities and beyond,’ was valued at about $300 million in March, when it raised $45 million from Sequoia, Verlinvest and others.
Purplle started as a typical e-commerce marketplace, last year CEO Taneja told to news source that the business will be run as two units – “where Purplle will be treated at an arm’s length distance, just like any other marketplace will be treated. So, one business is a platform marketplace business and the other business is a fundamental brand creation business.”
After incubating and launching brands over the past few years, Purplle is suddenly among a litany of companies wanting to build a ‘house of brands’ for new-age consumers. Mensa Brands, Upscalio, GlobalBees, Mamaearth and Mosaic Wellness are among those targeting this space, although some are more focused on healthcare than beauty and others are eyeing home-related categories and apparel too.
“Any private investor who missed Nykaa – and there are many – sees Purplle as the next-generation bet in this beauty and cosmetics space. Some of the newer brands are still untested but the core platform looks solid,” said a source involved in the negotiations.
While Nykaa turned in a net profit of Rs 61.9 crore in FY21 – one of the rare consumer startups to do so – Purplle’s earnings before interest, taxes, depreciation and amortisation were -2 percent, Taneja said. EBITDA indicates a company’s operating profit efficiency.
Purplle has been an online-only brand so far, unlike Nykaa, Mamaearth, SUGAR Cosmetics and others that have gone offline as well. Even as the COVID-19 pandemic waned and people continued to shop online, footfalls at malls increased significantly and in some cases, the offline shares of retailers returned to pre-pandemic levels.
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