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November 22, 2021

Beauty retailer Purpple raises $60m in funding from Premji Invest

The retailer secured a $75m investment from Kedaara Capital last month.

Indian online beauty marketplace Purplle has raised $60m in funding from investment firm Premji Invest.

The funding values the direct-to-consumer brand at $630m.

Purplle is expected to use the capital for acquisitions and to expand its retail operations.

Founded in 2012, Purplle records seven million active users a month and sells more than 1,000 brands, offering almost 50,000 products through its website and mobile app.

The company currently employs around 1,300 people, with plans to increase this to between 1,900 and 2,000 by the end of next year.

The investment comes a month after Purplle secured $75m in a funding round led by private equity fund Kedaara Capital.

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In March, the company raised Rs3.3bn ($44.4m) in a funding round, which was led by Sequoia Capital India and included Verlinvest, Blume Ventures and JSW Ventures among other investors.

At the time of last month’s funding round, Purplle co-founder and CEO Manish Taneja said: “We are at a GMV (gross merchandise value) run rate of Rs12bn ($161.2m).

“We want to keep growing at close to 70-80% year-on-year in the next foreseeable future. We will invest in the growth.

“We have been acquisitive at small levels in the past four years. Most of our growth has been organic but we will not shy away from making mid- to large-ticket acquisitions by taking our board into confidence.

“About 70% of the fund will be used for organic growth and around 30% for acquisitions.”

Premji Invest is owned by Azim Premji, founder and chairman of Indian technology firm Wipro.

In 2018, the company acquired a 6% stake in Future Retail for $252m from Cedar Support Services, a subsidiary of Bharti Ventures.

In a separate development, Purplle is reportedly in advanced talks to acquire a majority stake in skincare and cosmetics brand Faces Cosmetics.

Taneja recently told YourStory that the company plans to make more acquisitions in the beauty space in the coming years.