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Purplle.com closes funding of $75 mn led by Kedaara Capital

NEW DELHI: Online marketplace for beauty and personal care products, Purplle.com, on Friday said it has raised $75 million funding from private equity firm Kedaara Capital. 

The announcement comes six months after the company received $45 million funding backed by Verlinvest, Blume Ventures, JSW Ventures, and first-time investor Sequoia Capital India. 

The fresh infusion will be used for, both, the company’s growth as well as investments in other beauty tech players.

Co-founders Manish Taneja and Suyash Katyayani said the investment will be used to strengthen the company’s technological capabilities and for hiring talent. It will also be employed to introduce new products and brands as well as to invest in new acquisitions of companies building differentiated beauty offerings.

“Kedaara’s experience across consumer and tech will empower us in our next phase of growth,” they said.

Sunish Sharma, co-CEO and managing partner at Kedaara, and Anant Gupta, managing director at Kedaara said the company has demonstrated market growth and has built a platform focused on the ethos of democratising beauty and personal care across India.

“They offer a unique value proposition and 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,” they said.

Purplle’s co-founders said the company is on a robust growth trajectory, having grown its gross merchandise value (GMV) by 6x in the last three years. The company now has about 1300 employees across its functions since its inception in 2012.

In deploying these funds, it will also focus on it being a community-led platform and forge strong and exclusive partnerships with both domestic and global brands. Currently, it sells make-up, personal care products and gadgets for grooming.

It said it has seven million monthly active users primarily in tier two and three cities and over 1000 brands with 50,000 products. In comparison, competitor Nykaa said it has over 19.3 million monthly average unique visitors and close to 4000 brands listed on its website and two million products.

“These funds will allow us to continue to invest in India and the “Bharat” story since a majority of our customers are middle class Indians living in tier-2 and 3 India,” Taneja told Mint.

The company’s other marquee investors include Sequoia Capital India, Goldman Sachs, Verlinvest, Blume Ventures, and JSW Ventures. Year-to-date, the company has raised $125 million from 2015. In its fundraise round in March this year, Purplle gave a partial exit to IvyCap Ventures, which had invested about $2 million in Purplle in 2015.

Purplle has created digital first beauty brands namely Purplle, Good Vibes and NY Bae. Good Vibes, it said, is a ₹150 crore brand and is one of the top three in the naturals skincare space on the app.

Kedaara manages and advises over $ 3.9 billion through investments in businesses across consumer, financial services, pharma/healthcare, technology/business services and industrials.

India Brand Equity Foundation (IBEF) said the Indian e-commerce market is expected to more than double to $111.40 billion by 2025 from $46.2 billion in 2020. Much of this growth for the industry has been triggered by an increase in internet and smartphone penetration. Indian e-commerce will grow at a 27% CAGR over 2019-24, with grocery and fashion/apparel likely to be the key drivers of incremental growth. Avendus added that the global beauty and personal care market is expected to become a $725 billion market by 2025.

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