STARTUP-STORIES
Purplle Secures $100M Funding Led by ADIA Amid Rising Beauty Market Demand
SUMMARY
Mumbai-based beauty retailer Purplle raised $100 million in funding led by ADIA, valuing the company at $1.2-1.3 billion, while MCaffeine is also in the process of raising new funds.
The Indian beauty sector is experiencing significant growth with increased investments from venture capital and private equity, and major players like Nykaa, Myntra, and Reliance expanding their presence, driven by post-Covid demand and quick commerce platforms.
Mumbai-based beauty retailer Purplle has successfully raised $100 million in a funding round led by Abu Dhabi’s sovereign fund ADIA, valuing the company at approximately $1.2-1.3 billion. This marks a significant 15% increase from its previous valuation last year. The funding comprises both primary and secondary investments, with sector-agnostic PE fund Creaegis also expected to join the round. Existing investor Premji Invest has doubled down on its investment in Purplle.
MCaffeine in Midst of New Funding Round
MCaffeine, a caffeine-based skincare and haircare brand, is currently in the process of raising new funds, exploring both strategic and financial investors. The company plans to announce the funding round soon. The funds will be channeled into its parent firm, PepTechnologies, which also includes the newly launched skincare brand Hyphen.
Investor Confidence in Beauty Sector Surges
The post-Covid boom in beauty and personal care has attracted significant venture capital and private equity investments. Notably, skincare brand Foxtale and haircare brand Traya recently raised capital from Panthera Growth Partners and Xponential Capital, respectively. These brands have demonstrated robust growth, doubling their sales to around Rs 15 crore a month.
Expansion and Competition in Beauty Sector
Industry giants like Nykaa, Myntra, Reliance’s Ajio, and Tira are ramping up their presence in the beauty sector. In March, Mamaearth parent Honasa Consumer launched a low-cost beauty brand, Staze 9to9, while The Derma Co achieved an annual revenue run rate of Rs 500 crore in April. The increasing number of brands has intensified competition, yet new-age brands are distinguishing themselves through premium pricing and product quality.
Quick Commerce Driving Beauty Sales
A report from Bofa Securities highlighted the rapid growth of beauty products on quick commerce platforms. Major players like Blinkit, Zepto, Swiggy Instamart, and BigBasket’s BB Now are expanding their beauty product offerings to meet rising consumer demand.
The Indian beauty market is poised for substantial growth, driven by innovative new brands and strategic investments. Experts predict that several Rs 400-500 crore beauty brands will emerge in the coming years, solidifying India’s position as a key player in the global beauty industry.
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