India’s omnichannel beauty platform Purplle on Monday said it has closed its Series F round at Rs 1,500 crore ($179 million) with a fresh investment tranche of Rs 500 crore ($60 million).
The Series F round was led by a subsidiary of the Abu Dhabi Investment Authority (ADIA). Existing backers Premji Invest and Blume Ventures and new investor Sharrp Ventures joined the round.
In July this year, Purplle raised about $120 million in fresh funding led by a wholly-owned subsidiary of ADIA, as part of its Series F round. In 2023, ADIA first invested in Purplle through a secondary purchase of shares from existing investor JSW Ventures.
Purplle, founded by friends Manish Taneja, Rahul Dash, and Suyash Katyayani in 2012, became India’s 102nd unicorn in 2022, after raising $33 million from South Korea’s Paramark Ventures, Blume Ventures, Kedaara Capital, and Premji Invest.
Since then, Purplle has been able to raise funds consistently, despite an overall funding slowdown.
In 2020, Goldman Sachs bought out shares from Purplle’s angel investors Abhinav Sinha and Anirudha Gopalakrishnan.
Purplle’s latest funding round comes as big-ticket deals have seen an uptick in the past few months, reflecting a surge in investor confidence after a long-drawn funding winter.
Amongst other big deals, PhysicsWallah, which offers coaching for engineering entrance exams, raised the largest round of $210 million in its Series B funding round in September at a $2.8-billion valuation, defying the funding slowdown that has heavily impacted the edtech sector.
Beauty boom
Purplle’s funding comes as India’s beauty and personal care sector is undergoing a remarkable transformation and investors are taking note, driven by heightened awareness of physical appearance and rising disposable incomes.
Data from Venture Intelligence showed that 17 beauty startups have garnered $259 million in funding from private equity and venture capital firms until August 22, compared to 18 startups raising $222 million in the whole of 2023.
The sector has attracted marquee investors including Peak XV Partners, Accel, Tiger Global, KKR, Westbridge, Panthera Growth, and Premji Invest. These investors have backed high-profile brands such as Zenoti, Purplle, MyGlamm, Vini Cosmetics, and Foxtale. The surge in investment is fueled by the growing demand for homegrown beauty brands, bolstered by the boom in online shopping and social media consumption among Gen-Z consumers.
Indian beauty startups are distinguishing themselves by merging traditional beauty practices with modern innovations. By utilising natural and traditional ingredients like turmeric and neem, and adhering to clean beauty principles, these brands cater to health-conscious consumers who value wellness and sustainability.
Earlier this year, Kindlife, an online marketplace for cruelty-free, environmentally-friendly beauty and wellness products, co-founded by former ShopClues founder Radhika Ghai, raised $8 million in its Series A round led by JB-Dooeun TK Fund and MIXI Global Investments.
Among other deals this year, RENÉE Cosmetics, a new-age beauty brand founded by TV actor Aashka Goradia Goble, raised $12 million in its Series B round led by existing investors Evolvence India and Edelweiss Group, in June.
Separately, MCaffeine, a caffeine-based skincare and haircare brand, is known to be in the middle of a fundraising process and is exploring tapping strategic investors besides ongoing talks with financial investors for a new funding round, the Economic Times reported in June.
