Purplle, the beauty ecommerce marketplace, aims to expand its presence by opening additional brick-and-mortar stores this year. Additionally, the company is in early talks with the Abu Dhabi Investment Authority (ADIA) regarding a potential $100 million investment.
Mint reported, citing sources familiar with the matter, that the primary infusion is anticipated to take place predominantly via a secondary transaction, facilitating the exit of certain early investors.
According to the report, Purplle’s sought-after valuation remains undisclosed at present. The fundraising endeavor is anticipated to unfold in the upcoming months, possibly constituting a segment of the company’s pre-IPO round.
CEO Manish Taneja disclosed to Mint that Purplle intends to access the public markets sometime between the second half of next year and early 2026.
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In May last year, ADIA invested $50-60 million in Purplle at a $1.1 billion valuation, which remained unchanged from its previous valuation following a $33 million investment from Paramark Ventures in June 2022.
Based on Tracxn data, the company has secured a total of $387 million through 16 funding rounds.
Additional investors in Purplle comprise Peak XV Partners, Blume Ventures, and Premji Invest.
Taneja continued, stating that rising expenditure on beauty items and a growing inclination towards hybrid buying are the company’s driving forces for its entry into offline channels.
He also mentioned that the company currently operates only two offline stores but intends to open 5-10 more in the coming months.
Over the past two years, consumers have transitioned back to offline shopping as they resume pre-pandemic routines. This shift has prompted online beauty and personal care companies such as Nykaa, Mamaearth, and now Purplle to contemplate expanding their offline presence.
In February, Mamaearth’s co-founder Ghazal Alagh revealed plans to expand its omni-channel distribution, aiming to reach 17,000 retail touchpoints. This represents a notable 37% increase from the previous year.
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In the third quarter of fiscal year 2024, the startup expanded its offline footprint, extending to 177,366 FMCG retail outlets across India and incorporating approximately 8,000 additional stores.
Moreover, the company has established collaborations with Purplle and other entities to serve the needs of tier-2 and tier-3 segments.
In the meantime, media reports indicate that Nykaa’s store count surged to approximately 150 by FY23 from 72 stores two years earlier. However, according to Mint, Purplle intends to uphold its emphasis on online operations, which currently generate roughly 99% of its revenue, as stated by Taneja. He further mentioned that the launch of their stores is likely in an experimental phase, with intentions to assess their performance gradually.
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