Purplle, an online beauty company, has seen a 22x return on investment


Purplle currently competes with unicorn startup Nykaa, Sugar Cosmetics, MyGlamm, Amazon and Flipkart, and apparel marketplace Myntra, as well as horizontal marketplaces like Amazon and Flipkart. Via a partial exit from online beauty store Purplle, IvyCap Ventures, one of the country’s earliest early-stage venture capital (VC) companies, has returned a whopping 22x return to its investors. IvyCap sold its fund 1 stake of 30%, which it had acquired with a $2 million investment in 2015, for $45 million, making it one of the best returns ever for a rupee investor.

“The exit is a huge win for the domestic VC ecosystem, and it will inspire a lot of trust in this asset class. It’s a watershed moment in the industry’s history. The aim is to pave the way for potential fundraising activities and to reassure investors.IvyCap Ventures, as our Series A investor, has been instrumental in Purplle’s rapid growth. “Even with a Covid year, we have produced over 90% GMV CAGR for the last three years,” Purplle.com co-founder and CEO Manish Taneja said.

Purplle’s partial sale to IvyCap was accompanied by a $45 million investment from Sequoia Capital India and established investors Verlinv. Purplle was established in 2012 and now has over 6 million active users and 3 million monthly visitors. On its website and app, it claims to have over 700 brands and over 50,000 products. At the end of 2019, the company had received $30 million in Series C financing from Goldman Sachs and Verlinvest. Nykaa, Sugar Cosmetics, MyGlamm, and horizontal m are all rivals at the moment.

According to Statista, the beauty and personal care industry will generate $26.85 billion in sales in 2021 and will rise at an annual rate of 8.51 per cent until 2025. Personal care is the industry’s biggest segment, with a market value of $12.26 billion in 2021. With $82.26 billion in 2021, the United States is the world’s largest economy.

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