Ranjan Pai, the billionaire investor and chairman of the Manipal Group, is currently engaged in discussions regarding a substantial investment in the beauty e-commerce unicorn, Purplle.
According to a report by Moneycontrol, Pai is contemplating purchasing JSW Ventures’ stake in the company for an estimated amount ranging between INR 60 crore to INR 70 crore.
The potential investment signifies the second time JSW Ventures has decided to sell its shares in Purplle in just five months.
Back in May, JSW Ventures sold a part of its ownership to the Abu Dhabi Investment Authority (ADIA), realizing significant profits that were 18 times its original investment.
During the transaction, Purplle garnered between $50 million and $60 million in funding from the sovereign fund, Abu Dhabi Investment Authority (ADIA), in a funding round that encompassed both primary and secondary investments.
As of July, JSW Ventures possessed a 2.8% ownership stake in Purplle.
Purplle, a competitor of publicly traded beauty e-commerce company Nykaa and Reliance-led Tira, had plans to broaden its physical presence and adopt an omnichannel approach. Additionally, the company was actively seeking opportunities to acquire a few brands as part of its expansion strategy.
Established in 2012 by Manish Taneja and Rahul Dash, Purplle specializes in offering a wide range of beauty products and appliances. The platform features various direct-to-consumer (D2C) brands, including Plum, WOW Skin Science, mCaffeine, Maybelline, SUGAR Cosmetics, and many more.
During FY22, Purplle recorded a substantial increase in its revenue from operations, reaching INR 219.88 crore, which marked a 72% surge from the INR 128.15 crore reported in the previous fiscal year, as indicated in its regulatory filings. However, the company’s losses expanded to INR 203.63 crore in FY22, compared to INR 52.18 crore in the preceding year.
At the same time, Ranjan Pai is steadily establishing himself as a prominent investor in Indian startups. In August, reports surfaced indicating that Pai was in advanced negotiations to acquire a share in the upcoming IPO of FirstCry, a prominent e-commerce platform specializing in children’s products.
He has also strategically invested in several well-known startups, such as the edtech giant BYJU’S and the jewelry startup BlueStone.