Purplle, an e-commerce platform for beauty products in India, said on Monday it has raised $45 million in a new financing round as it looks to expand its presence in the world’s second largest internet market.
The new round, a Series D, was financed by Sequoia Capital India and existing investors Verlinvest, Blume Ventures, and JSW Ventures. The new round values the Indian startup — which has raised $95 million to date — at about $300 million, up from $150 million in its 2019 Series C round, a person familiar with the matter told TC.
The new round gave partial exit to IvyCap Ventures, which had invested about $2 million in Purplle in 2015. The venture firm said in a statement that Purplle delivered a 22X return and 1.35x of its entire Fund 1.
“We continue to believe in the growth of the company and therefore we have retained our stake for Fund 2,” said Vikram Gupta, Founder and Managing Partner of IvyCap Ventures.
Eight-year-old Purplle.com, which counts Goldman Sachs among its investors, says it sells nearly 50,000 products from over 1,000 brands. The startup said it has amassed 7 million monthly active users.
“Purplle has been on a robust growth trajectory. Even with a Covid year, we have delivered >90% GMV CAGR for the last 3 years. This, while scaling our private brands successfully; Good Vibes is already an INR 150 Cr [$20.7 million] brand. The investment will help to shape Purplle into a multibillion-dollar, digital-first, beauty and personal care enterprise,” said Manish Taneja (pictured above), co-founder and chief executive of Purplle, in a statement late Monday.
The growth of Purplle is indicative of the growing e-commerce space in India, where users are beginning to purchase fashion and beauty products online. MyGlamm, an omnichannel direct-to-consumer Indian brand, last week raised $24.2 million in a round co-led by Amazon.
“We are excited to partner with Purplle as we believe they have cracked the beauty playbook of value retailing with 3 key tenets – a business built on high retention and low customer acquisition cost (CAC), a wide assortment of brands offering quality at best prices, and an attractive private label portfolio mix. We see Purplle emerging as a dominant beauty destination as the online beauty penetration grows from 10% to 25%+ over the next decade,” said Sakshi Chopra, Principal, Sequoia India.