Purplle seeks $100 mn for offline expansion
In talks with Abu Dhabi Investment Authority; existing investors may exit
Online retailer Purplle plans to open more offline stores this year as it negotiates with Abu Dhabi Investment Authority (ADIA) for a $100 million investment, according to two people familiar with the developments. This investment would largely be through a secondary transaction in which some early investors would exit, they said.
The valuation that Purplle is seeking is not yet known. The fundraise is expected to take place in the coming months and may be a part of the company’s pre-IPO round, one of the people said. CEO Manish Taneja said Purplle plans to tap the public markets between the second half of next year and early 2026 but is in no hurry to do so.
Purplle declined to comment on the proposed fundraise, while ADIA did not immediately respond to Mint’s queries
If the deal goes through it will be ADIA’s second investment in the startup in 12 months. It previously invested $50-60 million in Purplle in May 2023 at a valuation of $1.1 billion. That was the same valuation Purplle commanded in its funding round in June 2022, in which Paramark Ventures invested $33 million. The company has so far raised $387 million across 16 rounds, according to data from Tracxn. Its other investors include Peak XV Partners, Blume Ventures and Premji Invest.
The company’s offline push is due to increased spending on beauty products and a growing preference for hybrid shopping, Purplle's chief executive Manish Taneja told Mint. The company, which has just two offline stores, plans to open 5-10 more in the next few months, he added. India’s young, growing population, higher disposable incomes and increased penetration of mobile phones fuelled online consumption during the heights of the pandemic. But over the past two years consumers have been seeking offline touchpoints for their
ADIA previously invested $50-60 million in Purplle in May 2023 at a valuation of $1.1 bn
purchases as they have gradually returned to pre-pandemic lifestyles. This has caused several online beauty and personal care companies such as Nykaa and Mamaearth—and now Purplle—to look at increasing their offline presence.
In February, Mamaearth's co-founder