purple: purple seeks $ 100 million from an internal increase worth $ 800 million

Bombay: Online beauty e personal care product reseller viola held talks with his existing investors to raise $ 75-100 million, giving him a evaluation before investment of about $ 800 million, four people aware of the development said.

The Mumbai-based company will raise the money largely from its existing investors loss of investment, Capital of Kedaara Other Awards investamong others, they said.

“This is a part of the capital that had already been committed to the company. There may be a couple of new investors, but it will largely be an internal round, “said one of the people quoted earlier.

A spokesperson for Purplle said in an email response to ET’s question that the company would not be able to comment at this point.

In November of last year,
Purple had raised $ 60 million by Premji Invest, the family office of

founding president Azim Premji, pushing his valuation to $ 630 million. Weeks earlier, it
had raised $ 75 million from Kedaara Capital, taking on the financing.

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Last year, Purple acquired the Faces Canada cosmetics and skincare brand. Following the acquisition, the company is expected to have recorded a combined turnover of Rs 750. Sequoia Capital has invested in both companies.

talks about funding at a time when risky investors have become cautious and most of the larger fundraisers are on hold due to falling valuations.

Major rival

Last year’s initial public offering (IPO) fueled an investor rush to acquire the beauty e-commerce segment. Other horizontal ecommerce players like Flipkart’s Myntra have expanded their beauty category. Purple also competes with brand platforms such as the Good Glamm Group.

Purplle is looking into many more reserve acquisitions and will use the capital to fund its inorganic growth plans, one person with first-hand development knowledge told ET.

Purple was founded in 2012 by Manish Taneja and Rahul Dash. Her beauty brands include Good Vibes, NY Bae, and Purple. The company has a catalog of over 1,000 brands and 50,000 offerings across multiple categories, including makeup, skincare, hair care, personal care, fragrances, and grooming appliances.

In December last year, the company said it expects to end fiscal year 2022 with an annualized gross commodity value (GMV) execution rate of Rs 1,400 crore.

According to company documents, it suffered a loss of Rs 51.26 crore in the financial year ending March 31, 2021. In the previous year it had recorded a loss of Rs 24.69 crore.

India’s beauty and personal care segment has seen investor interest rise over the past 12-18 months. last week,
Wow Skin Care raised $ 90 million from GIC. As reported by ET earlier, the
Good Glamm Group is in talks to raise $ 200 million in a funding round that would value it at $ 2 billion. Others like Sugar Cosmetics and Mamaearth have also recently raised capital from venture investors.

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