UAE’s ADIA invests $120 million in beauty retailer Purplle

Beauty retailer Purplle Group has raised $120 million (₹1,000 crore) from a clutch of investors led by sovereign fund Abu Dhabi Investment Authority (ADIA) at a valuation of $1.3 billion, The Economic Times reported, citing people aware of the funding details.

The bulk of the “primary capital raised” from the round, which included both primary and secondary share issues, will be used to invest in technology “and to experiment further with the offline store formats for retail expansion”, the report said, citing Purpple chief executive Manish Taneja.

In addition to the funding, the group also announced a $6 million (₹50 crore) employee stock ownership plan (Esop) liquidity program, Entrackr reported.

There may be another tranche of the same round, but that is yet to be finalized, the ET report said, adding that “70-80% of the funding was a secondary share sale where money changed hands between two investors”.

Indian family offices have reportedly become new shareholders in the 13-year-old beauty retailer, with early angel backers such as Goldman Sachs and Verlinvest selling their stakes.

Taneja said  ADIA’s increasing stake in the company is a testament to the strength of its business strategy and vision for sustainable and profitable growth.

Purple has increased its gross merchandise value (GMV) fourfold in the past three years.