Purplle, an online cosmetics retailer, has raised capital at a market valuation of $1.1 billion and has become India's newest unicorn, despite diminishing investor sentiment toward startups.
The Mumbai-based company has raised $33 million in Series E funding from South Korea's Paramark Ventures, existing backers Bloom Ventures, Kedara, and Billionaire Azim Premji's Premji Invest, the company said in a statement.
There are currently over 100 unicorns in India. This week, ed-tech startup Physics Wallah raised $100 million from backers such as WestBridge Capital and GSV Ventures at a valuation of $1.1 billion. With total funding of $215 million, Purplle will use its new capital to increase its investment in technology, develop its own brand and enhance its products.
Purplle caters to middle-class buyers in small Indian cities seeking value. Like Nykaa, it sells its products under its own brand. Indian consumers are increasingly looking at these newer, more aggressively priced brands, many of which are promoting chemical-free products. However, the market is heating up with new competition from players like MyGlamm backed by Amazon.com Inc.