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 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.
“The time is right for us to continue to build momentum and grow 80 percent year over year. In 3-4 years we will be like a mammoth potentially heading for an IPO,” said Puplle co-founder and CEO Manish Taneja told PTI .
The company had raised around $ 75 million on Friday ₹555 crore) in a financing round led by the private equity fund Kedaara with a company valuation of USD 630 million ( ₹4.662 million euros).
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 are probably operating on gross merchandise value of $ 150 million. We’ll love to increase our market share before we move into another market.
“We don’t understand anything outside of India like 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.
Purplle’s competitor Nykaa went public with a reissue of shares worth ₹630 crore and an offer for sale (OFS) 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 ₹Nykaa values 1,125 per share 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.
This story was published through a news agency feed with no changes to the text.
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