“Beauty is a dynamic business. As you build momentum and scale it up, your costs will decrease and you will become a profitable franchise. It is not the right time for us to continuously review our costs.
E-commerce company Purplle, which trades in beauty and personal care products, plans to go public (IPO) in 3-4 years after expanding its business, with targeted growth of around 80 percent year-over-year, a senior official with the company said.
The company’s announcement follows after its competitor Nykaa went public last week.
“Beauty is a dynamic business. As you gain momentum and scale up, your costs will decrease and you will become a profitable franchise. It is not the right time for us to keep looking at our expense.
“The right time is for us to gain further momentum and grow by 80 percent year-on-year. In 3-4 years we will be like a mammoth potentially aiming for an IPO, ”Puplle co-founder and CEO Manish Taneja told PTI.
The company announced on Friday that it would raise around $ 75 million ( -proximately Rs. 555 billion) in a financing round led by private equity fund Kedaara on a company valuation of $ 630 million (Rs. 4,662 billion).
The company will use the fund to grow six to eight fold over the next five years through organic and inorganic business.
Taneja said the company invests in marketing, which is a huge profit and loss expense, but is paid for by the business.
He said the company plans to increase its share of the Indian beauty market by about $ 20 billion.
“We’re probably working with a GMV (gross value of goods) of $ 150 million. We will love to increase our market share before entering another market.
“We don’t understand anything outside of India like we do now. Our main focus over the next 3-4 years will be to build massive leadership in India, ”said Taneja.
The company will continue to invest in technology and bring data-driven products to market.
Taneja said the company’s data scientist dictates the type of product the company should bring to market, and the product manager then works on the feel of the product.
Purple’s competitor Nykaa went public that included a new issue of shares valued at Rs 630 billion and an OFS offer of 41,972,660 shares by the promoter and existing shareholders.
FSN E-Commerce Ventures’ first share sale was fully subscribed on the first day of subscription on Thursday and subscribed 4.82 times on the second day of the offering.
The upper price range of Rs 1,125 per share values Nykaa at $ 7.4 billion.
According to Nykaa’s IPO documents, the beauty and personal care market in India was around $ 17 billion in 2019 and is projected to exceed $ 26 billion in 2025.
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