Nykaa rival online cosmetics retailer Purplle is newest unicorn

Purplle is the second startup to become a unicorn this week after edtech firm PhysicsWallah, which closed a $100-million round at a valuation of $1.1 billion recently. Both the funding announcements come at a time when founders and venture capitalists have been vocal about a ‘funding winter’.

Purplle competes with Falguni Nayar's Nykaa, one of the few Indian startups that is listed on the stock exchanges and is profitable too.
Purplle competes with Falguni Nayar's Nykaa, one of the few Indian startups that is listed on the stock exchanges and is profitable too.

Online cosmetics retailer Purplle has raised $33 million in its Series E funding round at a valuation of $1.1 billion, making it the latest entrant to the unicorns’ club. South Korean investor Paramark Ventures participated in the latest round along with existing backers.

Purplle is the second startup to become a unicorn this week after edtech firm PhysicsWallah, which closed a $100-million round at a valuation of $1.1 billion recently. Both the funding announcements come at a time when founders and venture capitalists have been vocal about a ‘funding winter’.

In all, Purplle has raised over $215 million so far. The Sequoia India and Goldman Sachs-backed beauty products company has 7 million monthly active users, over 1,000 brands, 60,000 products, and five private direct-to-consumer (D2C) brands. It has scaled its annualised gross merchandise value (GMV) to $180 million in financial year 2022, the company said in a statement on Thursday.

“We are humbled by the conviction of our investors in brand Purplle, being a testament to the value we have created over the years. We welcome our new investor, Paramark Ventures, and look forward to cross-country synergies. The infusion is an opportunity to further our mission of building the beauty industry in India with technological investments, scaling of our private brands, and industry-first innovations,” Manish Taneja, co-founder and CEO, Purplle, said.

Purplle competes with Falguni Nayar’s Nykaa, one of the few Indian startups that is listed on the stock exchanges and is profitable too.

After the latest round, Purplle counts Kedaara, Premji Invest, Sequoia Capital India, Goldman Sachs, Verlinvest, Blume Ventures, and Paramark Ventures as its investors.

Data from Venture Intelligence lists Purplle as India’s 98th unicorn.

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