Purplle.com (Purplle), an online beauty and personal care platform, has raised $30 million in Series C funding by global investment bank Goldman Sachs with participation from existing investors IvyCap Ventures, Blume Ventures and JSW Ventures.
The $7 billion Indian online beauty and personal care market is estimated to be growing at a compounded annual growth (CAGR) rate of more than 15 per cent driven by increasing awareness of the category and penetration in second and third tier cities.
Launched in 2012, Purplle has seen strong growth with revenue and orders growing by 100 per cent year on year while being managed with financial discipline. The company has turned a cash profit since 2018 and until this Series C fund raise, marking Purplle’s largest institutional raise, the company has been highly capital efficient by raising only $10 million over the past six years.
Through its online app and website, Purplle provides a highly-personalised digital shopping experience for consumers through the creation of detailed user personas, enabling customers to test make up and recommending products based on persona, search keywords and purchase behavior. The company offers a wide assortment of 47, 500 stock keep units (SKUs) across more than 1,000 third party and own brands. Over the past two years, Purplle’s net merchandise value has more than quadrupled.
The new funding will be utilised to further strengthen four key pillars of growth: investment in building unique supply of brands/products on the platform through partnerships with global brand houses and own brands, enhancement of the company’s data stack through investments in digital women-focused content, the continued curation of a highly personalised digital experience for consumers, powered by user personas and the company’s recommendation engine and investment in the creation of a global supply chain of world class beauty products.
Purplle.com’s Co-founder and CEO Manish Taneja said, “This investment from Goldman Sachs is a testament to the promise and potential of Purplle. This new funding will help propel the business to its next phase of growth for our customers and investors.”
Elaborating on the company’s growth plans, Rahul Dash, Co-founder of Purplle.com added, “This milestone funding will help us expand and strengthen our supply chain, marketing and technology. Given our rate of progress, we expect our growth in scale and size to expand ten-fold by the end of 2023.”
Niladri Mukhopadhyay, a Managing Director at Goldman Sachs, said, “Purplle, which has managed impressive growth while applying financial discipline, is one of the most promising vertical e-commerce platforms in India. The successful combination of best in class technology with their own innovative brands and localized beauty content is a key differentiator in this rapidly growing segment of India’s online market. We look forward to leveraging our global experience and network for the continued growth of Purplle.”