ADIA subsidiary leads $120m investment in beauty platform Purplle 

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In a significant boost to the Indian beauty and personal care sector, a subsidiary of the Abu Dhabi Investment Authority (ADIA) has spearheaded a substantial Series E funding round for Purplle Group.

The investment, amounting to $120m, was part of a broader financing effort that has propelled Purplle’s valuation to $1.3bn, solidifying its status as a major player in the retail market.

Increase in shareholding

ADIA’s decision to lead this round marks an increased commitment to Purplle, building on its initial investment made in 2023. This earlier stake was acquired through transactions with JSW Ventures and Ranjan Pai of Manipal Hospitals. 

The $120m raised in this Series E round involved both primary and secondary share issuances. Primary shares introduce new capital directly into the company, while secondary shares involve the transfer of existing shares between investors. This blend indicates a robust interest from both new and existing shareholders. 

Notably, initial investors like Goldman Sachs and Verlinvest have partially sold their stakes, making room for new investors, including prominent Indian family offices.

Market impact 

Purplle, which became a unicorn in June 2022 following a $33m investment led by South Korea’s Paramark Ventures and existing supporters Blume Ventures and Premji Invest, continues to capture significant investor interest. 

The fresh capital infusion underscores a broader revival in high-value funding within the Indian startup ecosystem, particularly in sectors experiencing rapid consumer growth.

According to Manish Taneja, co-founder and CEO of Purplle, the company plans to leverage this investment to enhance its technological and data capabilities, aiming to provide an exceptional omni-channel experience for its customers. Taneja also hinted at a potential public listing within the next three years, signalling Purplle’s ambitions for further expansion and market presence.

Beauty and personal care

Purplle is among the fastest-growing retailers in India’s beauty and personal care sector, having quadrupled its gross merchandise value (GMV) over the past three years.

 The company’s extensive portfolio includes private labels such as Faces Canada, Alps Goodness, Good Vibes, Carmesi, and DermDoc. These brands are particularly popular in tier II, III, and smaller markets, which are key growth areas for Purplle.

With a strong online presence reaching over 10 million consumers monthly and more than 20,000 offline touchpoints, Purplle is well-positioned to capitalise on the expanding demand for beauty and personal care products in India. 

The company’s omni-channel approach and broad market penetration underscore its strategic advantages in catering to diverse consumer needs across different regions.

ADIA looks at retail growth

The UAE sovereign wealth fund’s leadership in the recent funding round for Purplle Group underscores the attractiveness of the Indian retail market.

In 2023, ADIA invested $598m in Reliance Retail Ventures, India’s largest retailer ahead of a potential stock market listing.

The investment by ADIA at a valuation of $100.8bn translated into a stake of 0.59 per cent in the company, the retail unit of oil-to-retail conglomerate Reliance Industries. 

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