[Funding Alert] Purple Raises $60 mn from Premji Invest at $630 mn Valuation

Kedaara Capital invested $75 million in the company last fortnight. Purple is expected to utilise the fresh funds for acquisitions and its offline retail push.
[Funding Alert] Purple Raises $60 mn from Premji Invest at $630 mn Valuation

Ecommerce beauty platform Purple has raised $60million from Premji Invest, the family office of Wipro founder-chairman Azim Premji, valuing the direct-to-consumer brand at $630 million, regulatory filings showed.

Kedaara Capital invested $75 million in the company last fortnight. Purple is expected to utilise the fresh funds for acquisitions and its offline retail push.

The online beauty marketplace is in talks to buy a controlling stake in premium cosmetics and skincare brand Faces Cosmetics and is looking at multiple other tuck-in acquisitions to scale up its presence in the beauty space. Its own beauty brands include Good Vibes, NY Bae, and Purplle.

In March, the firm raised $45 million from investors led by Sequoia Capital India and existing ones such as Verlinvest, Blume Ventures, and JSW Ventures. It had raised 530 million in Series C funding, led by Goldman Sachs at the end of 2019.

Founded in 2012 by Manish Taneja and Rahul Dash, Purple has seven million monthly active users. The beauty e-tailer sells over 1,000 brands with nearly 50,000 products on its website and app, the company said.

The last two years have been very good, except, of course, the chaos for a few months. We are growing at close to 80 percent year-on-year. We are right now at Rs 100 crore of monthly gross merchandise value (GMV) and this is an all-time high," Taneja. GMV in e-commerce parlance refers to the total value of goods sold, including discounts but excluding returns.

Purple is a large online platform, but its private brand Good Vibes is also present in retail stores, especially in eastern India. Good Vibes does about Rs 150 crore in sales. One-third of Purple's total business comes from in-house labels. The beauty space has been abuzz over the last few months.

Omnichannel beauty retailer Nykaa, which had a bumper market debut last week, acquired skincare brand Dot and Key earlier this year. Good Glamm Group recently bought out baby and mother care brand The Moms Co. and is said to be in advanced talks to acquire premium beauty brand St Botanica.

Mamaearth, too, has raised $50 million in a round led by Belgian investment fund Sofina Ventures, valuing the D2C personal care brand at $730 million.

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