Purplle raises $34m from its subsidiary Sequoia for a valuation of over $700m

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Online beauty marketplace Purplle, operated by Mumbai-based Manash Lifestyle Pvt Ltd, has raised just over $34 million (Rs 257.43 crore) in its Series D1 funding round at a valuation of more than $700 million, led by Faces Investment Holdings – a subsidiary of Sequoia Capital, according to a regulatory filing.

Blume Ventures and investor Sangeeta Pendurka participated in the funding round which values ​​Purplle at $716.35 million, according to VCCircle estimates. Faces Investment Holdings, alone invested Rs 238 crore, while Blume Ventures invested Rs 17.81 crore, with the rest coming from Pendurka.

As part of the transaction, Purplle has allotted 5,608 Mandatory Convertible Preference Shares Series D1 (CCPS) at an issue price of Rs 4.59,041 each.

News website Entrackr first reported the development, saying the funding was raised at a value of over $725 million. An email sent to Purplle did not elicit an immediate response. According to the filings, the company reported a loss of Rs 51.26 crore for 2020-21 (FY21) compared to a loss of Rs 24.69 crore for 2019-20 (FY20).

Purplle raised $75 million in a funding round in October led by local private equity firm Kedaara Capital and joined by Sequoia Capital and Blume Ventures. Additionally, within a month, the company raised an additional $65 million in its Series D funding round from Premji Invest, bringing Purplle’s total Series D fundraising to $140 million. .

Purplle’s aggressive fundraising follows the stellar listing of its counterpart Nykaa, operated by FSN E-Commerce, on stock exchanges in November. Shares of Nykaa have risen more than 80% since its debut, bringing the company’s total market capitalization to almost Rs 1 trillion.

Fundraising in the broader beauty and personal care segment has also increased in recent months. VCCircle reported that ChrysCapital-backed skincare brand WOW Skin Science was in talks to raise $50 million at a valuation of nearly $400 million. Another cosmetics brand SUGAR, operated by Vellvette Lifestyle Pvt Ltd, was planning to raise $60 million at a valuation of $500 million, VCCircle reported.

Purplle also recently purchased cosmetics and skincare brand, Faces Canada, which was previously owned by Sequoia Capital India and run by an executive team. The acquisition was solely for the Indian brand, which is present in more than 140 cities and towns in more than 1,500 modern cosmetic stores and outlets, the company said. The brand had joined Purplle’s portfolio of owned and acquired beauty brands, including Good Vibes, Carmesi and NYbae.

Sequoia Capital, meanwhile, recently invested in fellow personal care company Honasa Consumer Pvt Ltd, which owns brands like Mamaearth and The Derma Co.

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