Purplle, an e-commerce platform for beauty products has raised around INR 555 crore ($75 million) in a funding round led by private equity fund Kedaara at a valuation of INR 4,662 crore ($630 Mn). Existing investors Sequoia Capital and Blume Ventures also participated in the funding round.
The company will use the fund to grow six to eight times in the next five years through both organic and inorganic business developments.
Launched in 2012, Purplle is an online beauty and personal care brand that provides personalised digital shopping experiences for consumers by creating detailed user profiles. The startup claims that it has turned cash profit since 2018. Through its app and website, Purplle claims to offer over 47,500 SKUs to more than 1,000 third-party and its own brands.
The company has around 1,300 people working with it directly and plans to increase it by 50 per cent by the end of the next year and ships out five to six lakh products every month.
Manish Taneja, Co-founder & CEO of Purplle, said, “We are at a GMV (gross merchandise value) run rate of Rs 1,200 crore. We want to keep growing at close to 70-80 per cent year-on-year in the next foreseeable future. We will invest in the growth. We will invest in the people and at the same time build processes and systems and try to build Purplle as an institution and not another company. We will invest in technology.
“We have been acquisitive at small levels in the past four years. Most of our growth has been organic but we will not shy away from making mid- to large-ticket acquisitions by taking our board into confidence. About 70 percent of the fund will be used for organic growth and around 30 percent for acquisitions,” Taneja further said.
Sunish Sharma, co-CEO and Managing Partner, Kedaara, said, “We believe Purplle offers a unique value proposition and a superior customer experience and will continue to have strong tailwinds for a long time. We are excited with our new investment in the consumer-tech space and look forward to working closely with the Purplle team.”