Ranjan Pai, the esteemed billionaire investor, has recently garnered attention for his decision to sell a controlling stake in Manipal Hospitals to Singapore's esteemed Temasek. This significant transaction stands as the largest deal executed by a private equity fund in India's esteemed healthcare sector.
Currently, it seems that Pai has expressed interest in making an investment in Purplle, an online retailer that focuses on beauty and personal care products. According to sources, he is considering acquiring JSW Ventures' shares in the company, with an approximate value ranging from Rs 60-70 crore.
This move aligns with JSW Ventures' previous decision to divest a portion of its stake in Purplle to the Abu Dhabi Investment Authority (ADIA), resulting in a remarkable 18X return on its initial investment. According to data provided by Tracxn, a private markets data provider, JSW Ventures held a 2.8 per cent stake in Purplle as of July.
Both JSW Ventures and Purplle politely declined to comment on the matter. It is worth mentioning that Pai's potential investment further highlights his ongoing engagement in the startup ecosystem. It is important to note that he recently finalized a significant agreement with Temasek concerning Manipal Hospitals, cementing his influential role in India's healthcare sector. Moreover, he is responsible for supervising the Manipal group of educational institutions.
In the past few months, Pai has become an enthusiastic angel investor, purchasing shares in several startups such as the leading Ed-tech company, Byju's, the children's product retailer, FirstCry, and the jewellery brand, BlueStone, among others.
Pai's investment in Purplle, valued at approximately Rs 60-70 crore, was made possible through a secondary market transaction with the assistance of JSW Ventures.
In May, Purplle achieved a successful funding round, raising a significant amount of $40-$50 million. This notable accomplishment involved a secondary market transaction with ADIA, along with a smaller primary component from Paramark Ventures, a valued existing investor in the company from South Korea. Purplle has expressed intentions to utilize this capital for expanding its offline presence through the opening of additional stores, as well as enhancing its online footprint.
This strategic move is in line with a broader trend in which an increasing number of online startups are adopting an omnichannel approach. This transition seeks to diversify revenue streams, minimize customer acquisition expenses, and maintain growth, especially following the rapid expansion experienced during the COVID-19 pandemic.
Purplle, founded in 2012 by Manish Taneja and Rahul Dash, is engaged in the operation of an e-commerce platform that specializes in beauty and personal care products. The company faces competition from well-known players in the industry such as Nykaa, Myntra (which is owned by Walmart), and Flipkart.
To ensure strong competition, Purplle has successfully obtained around $450 million in funding from highly regarded investors including Premji Invest, Blume Ventures, Kedaara Capital, Goldman Sachs, JSW Ventures, and other esteemed partners. Consequently, the company's valuation has reached an impressive $1.1 billion.
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