5 April 2024 – Purplle, a beauty ecommerce marketplace, is in talks with Abu Dhabi Investment Authority (ADIA) for a $100 million investment. Alongside, the company plans to open more offline stores as part of its expansion strategy. This move comes amid a growing trend of online beauty brands exploring offline retail avenues.
Purplle aims to secure a $100 million investment from ADIA through a secondary transaction, allowing some early investors to exit. The exact valuation sought by Purplle remains undisclosed, with the funding expected to precede the company’s potential IPO round, slated for the second half of next year or early 2026, according to CEO Manish Taneja.
Previously, ADIA had invested $50-60 million in Purplle, valuing the company at $1.1 billion. With a total funding of $387 million across 16 rounds, other investors include Peak XV Partners, Blume Ventures, and Premji Invest.
Expanding its offline footprint, Purplle plans to open 5-10 additional stores alongside its existing two outlets. This move aligns with the trend of online beauty brands diversifying into offline retail due to increased consumer spending on beauty products and a preference for hybrid shopping experiences.
The shift towards offline shopping has been observed across the industry, prompting competitors like Nykaa and Mamaearth to expand their offline presence as well. Mamaearth, for instance, plans to increase its omni-channel distribution to 17,000 retail touchpoints, while Nykaa’s store count reached approximately 150 as of FY23.
Despite the offline expansion, Purplle maintains a strong focus on its online operations, which currently contribute to 99% of its revenue. Taneja notes that the initiation of offline stores is experimental, with plans to evaluate their performance over time.
