Omnichannel beauty and personal care retailer Purplle has put on hold its fundraising discussions with private equity investors over valuation differences, said people familiar with the matter.
At the same time, the company’s founders – Manish Taneja, Rahul Dash and Suyash Katyayani – are buying shares worth Rs 90-100 crore from angel investors and some employees at a valuation of about Rs 11,300 crore.
The transaction values the company around 11% above its last funding round in 2024, when Abu Dhabi Investment Authority (ADIA) led a Rs 1,500-crore investment at a valuation of about Rs 10,000 crore.
ET had reported in January that Purplle was in talks with investors including KKR, TPG Growth and ChrysCapital to raise about Rs 1,800 crore at a valuation of nearly Rs 13,000 crore.
Those discussions have now been shelved as the company believes its growth trajectory warrants a higher valuation. “Purplle has continued to scale rapidly, with revenue estimated to have grown 35-40% in FY26. The company felt the valuation premium being offered did not adequately reflect that growth,” said one of the persons, who did not wish to be identified.
In 2024-25, Purplle more than doubled its operating revenue to Rs 1,367 crore.
The company is now doubling down on its portfolio of in-house brands while accelerating its offline expansion strategy.
Purplle owns six private labels—Faces Canada, Alps Goodness, Good Vibes, Carmesi, NY Bae and Dermdoc—which together contribute slightly more than half of its overall sales.
“It currently operates around 200 stores and plans to expand that network more aggressively, with a particular focus on tier-2 and tier-3 markets where demand for organised beauty retail is rising,” said another person.
Purplle did not respond to ET's queries.
According to Tracxn data, the company's three founders collectively own 15.6% of the business, while private equity and venture capital investors hold 65.6%. Angel investors own 6.8%, with the remaining stake reserved under the employee stock option pool.
Purplle competes with listed beauty retailer Nykaa, Reliance Retail-backed Tira and other beauty and personal care platforms.
According to the Nykaa Beauty Trends Report, India’s beauty and personal care market is projected to grow at a compound annual growth rate (CAGR) of 10-11% to reach $34 billion by 2028, up from $21 billion in 2024.
Ecommerce is expected to be the biggest growth driver and the fastest-growing channel, expanding at an estimated CAGR of about 25% as brands increasingly adopt digital-first strategies to cater to consumers seeking greater convenience and wider product choices.
