ADIA invests $50-60 million in Purple at a valuation of $1.1 billion

The investment is mostly through secondary transactions as some of Purple’s early investors decided to exit, the people cited above said on condition of anonymity. The investment was made at a valuation of $1.1 billion, the same as in June 2022 when Paramark Ventures invested $33 million in a primary fund, the people added.

The latest investment also has a smaller primary element, one of the two people said, which the company is looking to use to expand its physical footprint as part of its omnibus strategy.

“The company is looking to have a phygital (physical plus digital) presence in major metros and Tier I cities and will enhance its physical touch points through its private label kiosks,” the person said. brand to stay in the game,” he said.

Most direct-to-consumer companies that began as online-only stores are looking to expand their footprint to physical touch points, with some looking to acquire brands with large offline footprints. Purple has raised about $250 million to date, with leads including Goldman Sachs and Verlinvest.

Established in 2012 by Manish Taneja and Rahul Dash, Purple sells a wide range of beauty and personal care (BPC) products. The company says that in FY22, it recorded $180 million in gross merchandise value or value of goods sold.

The company competing with Nykaa saw an increase in its revenue from operations 219.88 cr in FY22, up 72% 128.15 crore a year ago, its regulatory filings show. loss increased to 203.63 cr in FY22 52.18 crores in the previous year.

“The company has been able to contain its losses and is on track to become profitable in the current financial year. Investors are betting big on this emerging category,” said the second person cited above. A spokesperson for Purple did not respond to emailed questions, while a spokesperson for ADIA declined to comment.

As of June 2022, Purple had seven million monthly active users and carried over 1,000 brands on its platform, including five private labels. Its stronghold is in non-metro cities. It acquired cosmetics and skincare brand Faces Canada in December 2021 to get more private labels on its platform. Startups such as The Good Glam Group, Sugar Cosmetics and Mamaearth have raised substantial funding in the last 24-36 months in the online beauty market, traditionally dominated by large multinational companies.

Market researcher Statista estimates India’s online beauty and personal care market to be worth $27.23 billion in 2023 and is expected to grow by 3.38% annually through 2027.