Goldman Sachs may lead $42m funding in beauty products retailer Purplle

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Online makeup and beauty products retailer Purplle is in talks to raise up to ₹300 crore in a Series C funding round led by Goldman Sachs, said two people close to the deal, requesting anonymity.

Purplle’s existing investors, Blume Ventures,IvyCap Ventures and JSW Ventures, the startup investment arm of Sajjan Jindal-led JSW Group, are also expected to participate in the round.

Goldman is expected to invest from its growth and venture capital investment arm, Goldman Sachs Investment Partners (GSIP), said the people cited above.

While a Goldman Sachs spokesperson declined to comment, Purplle did not respond to an email seeking comment.

Purplle sells makeup products and fashion accessories, as well as wellness products for men and women on its website. While it sells renowned makeup brands, it has also introduced its private label, which investors say, is already accounting for a significant chunk of its sales. It also provides makeup content and guided videos from bloggers.

In the current calender year, it is expected to generate about ₹300 crore in sales, said a third person, also requesting anonymity.

The online makeup and cosmetics segment has seen strong investor interest over the last few years, driven by aspirational millennial consumers with high propensity to spend, and broader and cheaper internet connections.

Purplle competes directly and indirectly with brands including Nykaa, founded by veteran investment banker Falguni Nayar, Sugar Cosmetics and skincare startup Plum, backed by Unilever Ventures, the venture capital and private equity arm of consumer giant Unilever.

While Sugar Cosmetics raised $10 million earlier this year from A91 Partners, Nykaa raised ₹100 crore from TPG Growth in April, at a valuation of ₹5,000 crore.

However, unlike Nykaa, Purplle is looking at Tier 2 and 3 cities for growth and to bring in a major chunk of its revenue, said an investor in Purplle, requesting anonymity.

“The market is also big enough to have multiple firms achieve significant scale, because digital-first cosmetic brands are only beginning to disrupt the market,” the person added.

This article was first published on livemint.com

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.