The business is in talks with the Abu Dhabi Investment Authority (ADIA) for a $100 million investment. This infusion is mostly likely to occur via a secondary deal in which some early investors may exit. The company has only two offline outlets and wants to open 5-10 more over the following few months.
Purplle, a beauty e-commerce platform, plans to open more offline stores this year while also pursuing an initial engagement with the Abu Dhabi Investment Authority (ADIA) for a $100 million investment.
This injection is expected to take place mostly through a secondary sale in which some early investors withdraw, according to Mint, citing sources familiar with the situation.
According to the article, Purplle is currently seeking an undisclosed valuation. The fundraising is scheduled to take place in the next months and might be part of the company’s pre-IPO phase.
Purplle CEO Manish Taneja told Mint that the company intends to enter the public markets in the second half of next year and early in 2026.
In May of last year, ADIA invested $50-60 million in Purplle at a $1.1 billion value, which was the same valuation as when it secured $33 million from Paramark Ventures in June 2022.
According to Tracxn, the company raised $387 million in 16 rounds.
Premji Invest, Blume Ventures, and Peak XV Partners are some of the other investors in Purplle.
Taneja explained that the company’s offline effort is driven by increased expenditure on beauty items and a growing inclination for hybrid shopping.
He added that the company now has only two offline outlets and wants to open 5-10 more in the next months.
Consumers have turned to offline purchasing over the previous two years as they revert to pre-pandemic practices. This trend has prompted online cosmetics and personal care brands such as Nykaa, Mamaearth, and Purplle to consider increasing their offline presence.
Ghazal Alagh, Mamaearth’s cofounder, revealed plans in February to expand the company’s omnichannel distribution to 17,000 retail touchpoints, a 37% increase over the previous year.
In Q3 FY24, the firm extended its offline presence in India, reaching 177,366 FMCG retail locations and opening approximately 8,000 new stores.
Furthermore, the company has created collaborations with Purplle and others to serve the tier 2 and tier 3 markets.
According to media reports, Nykaa’s shop count expanded from 72 stores two years previously to about 150 locations as of FY23. Purplle will, however, keep its concentration on online activities, which presently account for almost 99% of its sales, Taneja told Mint. Taneja went on to say that the launch of their stores will most likely be an experiment, with plans to evaluate their performance over time.
