Key facts
- Purplle has paused fundraising talks with investors due to valuation disagreements.
- Founders are acquiring Rs 90-100 crore worth of shares from angel investors and employees.
- The company's valuation is set at approximately Rs 11,300 crore for the founder stake purchase.
- This valuation represents an 11% increase from its last funding round in early 2024.
- Purplle's operating revenue more than doubled to Rs 1,367 crore in the fiscal year 2024-25.
- The company is intensifying its focus on in-house brands and expanding its physical store presence.
Omnichannel beauty and personal care retailer Purplle has paused its fundraising discussions with private equity investors due to disagreements over valuation. Concurrently, the company's founders are acquiring shares worth Rs 90-100 crore from angel investors and some employees at a valuation of approximately Rs 11,300 crore.
The valuation for the founder-led transaction is about 11% higher than the company's last funding round in early 2024, where Abu Dhabi Investment Authority led a Rs 1,500-crore investment at a valuation of around Rs 10,000 crore. Earlier reports indicated Purplle was seeking to raise about Rs 1,800 crore at a valuation near Rs 13,000 crore from investors like KKR, TPG Growth, and ChrysCapital, but these discussions have been shelved.
Purplle believes its rapid growth trajectory justifies a higher valuation. The company's operating revenue more than doubled to Rs 1,367 crore in the fiscal year 2024-25, with estimated revenue growth of 35-40% projected for FY26. The company is now focusing on its portfolio of six in-house brands, which account for over half of its sales, and is accelerating its offline expansion.
Purplle currently operates around 200 stores and plans to significantly expand its network, particularly in tier-2 and tier-3 markets. The founders collectively own 15.6% of the business, while private equity and venture capital investors hold 65.6%. The company competes with Nykaa and Reliance Retail's Tira in India's beauty and personal care market, which is projected to reach $34 billion by 2028.