Beautyproducts platform Purplle eyes $500 million valuation
Purplle is in talks to raise $50-75 million, valuing the company at over $500 million, people familiar with the matter said, underlining the funding frenzy under way for consumer brands, especially in the beauty and wellness segment.
Investors including Norwest Venture Partners, Kedaara Capital, Venturi Partners and South Korea's Mirae are jostling to invest in Purplle, while Sequoia India will double down on its stake, the people said requesting anonymity. Purplle is still deciding the allocations for investors, they added.
Purplle, pitched earlier to investors and executives as a 'Nykaa for tier 2-3 cities and beyond,' was valued at about $300 million in March, when it raised $45 million from Sequoia, Verlinvest and others.
Cosmetics retailer Nykaa is gearing up for a record-breaking public share sale that could value the company at as much as $8 billion – over 20 times its annual revenue, people aware of the IPO plans said.
Purplle, in comparison, has a revenue run rate of about $80 million, or about Rs 50 crore, a month. That would put its valuation at 5-6 times its annual revenue.
Founded by Manish Taneja and Rahul Dash in 2012, Purplle offers makeup, skincare, hair care and other beauty and personal care products by aggregating brands such as L'Oreal, Colorbar and Mamaearth on its platform.
Purplle also has its own brands including NYBae and Good Vibes. Unlike Nykaa, it plans to launch multiple independent brands that will have their own marketing and positioning.