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The Bot And The Beautiful: Beauty Ecommerce Startup Purplle Is Banking On Machine Learning To Achieve $46 Mn GMV In FY ’18

The Bot And The Beautiful: Beauty Ecommerce Startup Purplle Is Banking On Machine Learning To Achieve $46 Mn GMV In FY ’18

“A consumer who deals is attracted to discounts; a high-end consumer is searching out cost.” This quote aptly describes Manish Taneja’s splendor ecommerce startup Purplle. The portal, which changed into released in 2012, with a small 800 squaretoes warehouse area in Mumbai became, at one point, suffering to get the word out with a trifling $1240 (INR 80K) advertising price range. Today, it is a rising superstar inside the niche Indian beauty ecommerce space amidst players like Nykaa, Flipkart, Jabong, Myntra, Amazon India and extra.

Purplle has visible its truthful proportion of successes and failures when you consider that inception. Manish Taneja and his co-founder, Rahul Dash, along side CTO Suyash Katyanani, but, believed in best one philosophy.

“Customers should be the centre point of the verbal exchange and sale. And the intention of a splendor ecommerce portal have to be to offer answers for his or her needs. A hard sell based on discounts is a huge no.”

From 3 folks that labored out of a cramped workplace, Purplle now boasts of an over 17000 sq.Toes. Warehouse area and a complete of one hundred twenty employees, 50 of which manipulate the warehouse and logistics aspect of the enterprise. As claimed by using the founders, within the remaining six months, the startup raked in monthly revenues of $2.17 Mn (INR 14 Cr) -$2.Three Mn (INR 15 Cr) with one hundred% increase. They have additionally declared $46 Mn (INR 300 Cr) in gross merchandising quantity sales, with a median ticket size of INR 1,500 for FY ’18.

With a $6 Mn Series B funding round in vicinity, the startup has already gained the eye of few of the leading startup buyers along with Blume Ventures, JSW Ventures, Chennai Angels, Mumbai Angels, and IvyCap Ventures.

The corporation currently has a day by day conversion rate of 10%-eleven% throughout website and app and claims to have the ability to break even by way of September 2017.

The Purplle Founders’ Journey

Before being bit by the entrepreneurial malicious program, IIT Delhi graduate Manish became related to Fidelity Investments in Mumbai, whilst IIT Kharagpur batchmates Rahul and Suyash have been working in an edtech employer referred to as Vidya Science. As fate could have it, they ended up being roommates. So, while the time got here to startup, they banded together to construct something in beauty ecommerce. Manish does admit that when they started out, none of them had any ecommerce experience.

When they began, Indian ecommerce had simply started out to ripen and the simplest names one could hear have been Flipkart, Snapdeal, Myntra, Quikr, BigBasket, and so forth. Beauty and well being changed into almost a beneath area of interest sector beneath the broader class of on-line retail and Purplle turned into scraping the lowest of the barrel – in phrases of visibility and market percentage.

“Until about five or six years in the past, the offline beauty purchasing revel in in India turned into patchy and biased. The bias nonetheless exists which results in a compromised client enjoy,” says Manish.

He in addition provides, “During our preliminary days of studies, we found sales to be a numbers sport for logo dependable personnel, whose final intention is to promote their brand’s merchandise. So, whilst a consumer comes to them, they are only inquisitive about the finale sale, with out even knowledge the actual necessities of the client. This sort of state of affairs ends in a difficult sell, where ‘our logo is the first-class’ is the principal motto to be able to maximise the sale. But, we desired to be unique from this.”

2012-2013: The Beginning Years Of Purplle

The internet site turned into officially released on January 2012 with an stock-led model, renting a small 800 sq.Ft. Warehouse to inventory objects. Manish reveals that inside the preliminary few months, they didn’t even have the satisfactory brands to sell.

Since splendor ecommerce turned into unknown as a vertical, wholesalers and brand reps trusted popular exchange greater via shops like Shopper’s Stop, Lifestyle or even nearby stores. He even admits that, at one point, they were selecting up stock from the CFD Canteen (Central Defense) wherein antique SKUs of properly brands have been to be had at dirt cheap prices.

He does rationalise the entire revel in through including, “But we learnt that in a brand new enterprise in popular, not anything actions in the first six months. No count how tough you practice force.”

So, of direction, the logical step for the employer became to get the word available approximately the manufacturers available and the platform itself. They used a -pronged method to crack this issue. First, Digital advertising – where they depended on incredible content to amass a network of readers who could turn customers. The different element they did become Partnerships – with a loyalty programme referred to as Payback to growth their advertising outreach.

After six months of release, the Purplle team boarded the search engine marketing journey in July 2012 and focussed on Google marketing. “We outsourced this part of the digital advertising effort to a small organization in Pune with a bare bones price range of $1240. Our go back on that specific effort become 10x. We managed to make sales really worth $12.4K (INR 8 Lakhs)-$15.5K (INR 10 Lakhs). It turned into a case of low price acquisition and no opposition.”

2013: When Things Changed For The Better

2013 changed into a banner year for the agency as things started snowballing quickly within the proper route. Inventory turned into now being dealt with with the aid of cutting-edge alternate groups and large manufacturers started showing interest in associating with the platform.

But it became the community that Purplle skilled its focus on. They released a Q&A platform with a couple of in-house experts that aimed to encourage customers to ask all of the questions that need answering. Be it concerning the type of eyeliner or shampoo to use to which brands had been the exceptional for what product. It caused the network to have interaction with every other in an organic manner. “Google cherished this platform and rewarded us with increased site visitors. Organic site visitors shot up via 11x in 2013.”

With the organisation displaying boom, they also managed to raise their first round of funding. A $600K angel spherical led by using Blume Ventures. The Chennai Angels and Mumbai angels also participated within the spherical.

Also, with the gathered records, Purplle founders gave a run to an ecommerce platform, based totally merely on facts and device gaining knowledge of algorithms.  Thus powering their way towards splendor guidelines – a sought-after blog class even today.

2014-2015: Building The App, Pivoting To A Full-Stack Beauty Destination

Manish divulges that the employer grew at 13% MoM in orders and specific users for 2014. The company also controlled to elevate a Pre-Series A from IvyCap Ventures in 2015 after a six-month spoil and an undisclosed quantity in Series A funding from Blume Ventures, Chennai Angels, and Mumbai Angels.

At the time of elevating Series A, they were nonetheless in general a desktop-dealing with platform. And Suyash become the only tech character as well as the CTO of the enterprise, who built out the ML algorithm, inventory management and recommendation engine for the website.

The largest mission that Purplle undertook turned into launching a cell-pleasant version of the identical. “Our handiest tech man or woman became Suyash whilst we first concept approximately launching the app in December 2014. And the Android app was riddled with insects while it got here out in June 2015.

That’s while we sooner or later determined to extend our cell and website DevOps crew.”

Further, it additionally have become impossible for their warehouse to shop stock because of excessive order volumes. So, one of the important demanding situations the agency tackled turned into to move to a bigger 17,000 sq.Feet. Warehouse in an outer suburb of Maharashtra – Bhiwandi. As with making all such adjustments, logistics turned into the largest issue to address.

Hyperlocal Beauty And Wellness: A Gambit That Didn’t Pay Off

During this period, Purplle additionally attempted to digitally onboard offline beauty salons on its platform to ensure that Purplle users get a full-stack splendor and grooming revel in. This turned into a massive task that point, which in recent times brands like UrbanClap, Enrich Salons (with the acquisition of Belita), VLCC (with Vyomo’s acquisition) and Quirk’s AtHomeDiva have pulled off properly. However, Purplle turned into now not capable of do so.


The concept became equal: to have a user log in to buy products and then take it a step similarly with the aid of booking appointments for their subsequent grooming consultation. Or to check out what form of on-demand services they wished and if any nearby salon would provide for the identical. Purplle might fee a commission for the same.

In an in advance interplay in 2014, co-founder Rahul Dash had spoken to Inc42 approximately the same. “The splendor and grooming offerings paperwork the second one pillar of consumption and is a ~$three Bn industry. A large a part of the market is unorganised and provides a massive possibility.”  Although, the organization claims to have onboarded 7,000 salons for the identical, but stopped the service amidst losses and agree with troubles.

“We confronted a number of consider issues on  fronts while we entered this vertical. For clients, having a beautician come domestic required a diploma of accept as true with and comfort that we couldn't definitely offer. And then, salon chains preferred to go with larger ecommerce marketplaces as fee factors in India require extent bookings, which had been now not happening on the time. Sometimes, timing isn't always the entirety,” Manish philosophises, because the cause for pausing the endeavour.

Launching A Private Label: StayQuirky

Purplle, like other ecommerce carriers Flipkart, Amazon, Nykaa, Urban Ladder, has also forayed into the personal label space by subsuming in-house logo StayQuirky. This is so because, the herbal lifestyles cycle of the retailing experience requires foraying beyond aggregation and launching an identification of one’s very own. While Flipkart has Divastri and Metronaut, Amazon has Symbol and Nykaa has an eponymous label, Purplle acquired a brand already operating at the platform.

StayQuirky was launched in 2015, and it was simply one the various 650 manufacturers on the Purplle platform. The emblem become started by using Pratik Sonthalia, who comes from an intensive advertising and advertising history. Pratik reveals that Purplle is a trader at heart and supplied splendid mentoring and support in the preliminary few months of release.

“Purplle has an engine that includes imparting a unbroken patron enjoy on line via specializing in unit economics and not sporting too much stock. A exercise we observe at StayQuirky too. But StayQuirky is a brand, a lifestyle message for the quirky female who is simply earned her first paycheck and desires to treat herself.”

StayQuirky’s audience and brand philosophy meshed properly with the primary kind of target audience that Purplle had as consumers, which caused a extra integration among the 2.  They commenced off with 2 hundred nail shades priced at INR 88 and going up to INR 250 and have the potential to roll out as much as 1100 sun shades.  Although Pratik is reluctant to expose present day growth figures, he does say that forty seven% of all nail hues being bought on Purplle are from the StayQuirky. He credits a careful modulation of Instagram advertising and purchaser outreach to this spike in figures.

The sales returns, coupled with StayQuirky’s philosophy, led to a natural merging of the two entities in April 2017. “It isn’t so much an acquisition as a strategic alliance that we have formalised now,” Pratik says.

To which Manish adds, “StayQuirky is a emblem which speaks to women who are quirky and unique. Not the normal form of women. So the goods and ethos reflect the same. It’s a top rate product at access stage rate factors, so it become a natural match for us.”

Decoding The Purplle Platform: Chatbot, Audience And More

While traditional gamers which include Amazon, Flipkart and area of interest participant Nykaa served up class-clever recommendations, Purplle has relied only on tech and content to come back to their rescue. The Q&A platform and person community created in 2013, helped tell the recommendation platform and Chatbot assistant.

As Manish says, “Perhaps, at heart, we're a tech agency trying to revolutionise beauty. Thus, we determined to utilise statistics to get a clean expertise on our target purchaser.”

The facts generated from the consumer community helped them to construct buckets of purchasers and refine their target audience greater as it should be. Purplle has bucketed its TA (target audience) into three sections. The first 75% of consumers are within the age variety of 23-25 – those are current graduates who've just joined the staff and want to appearance smart and professionally groomed. They use the recommendation seeker discussion board and also watch the explainer films for simple hacks along with applying the winged eyeliner. “They are the ones who have interaction with the personalised consumer-facing content we placed on the platform.”

The 2nd and 0.33 TAs fall under the age range of 27-35. These are the multitaskers, go-getter women who've loads on their plate. They come to the app, log in and buy exactly what they need. These are the repeat order clients. And the remaining type is the beauty aficionado who have the time and wherewithal to take pleasure in buying new merchandise. They are beauty aware but are usually keen to attempt on new objects.

These user profiles will become useful for the product advice solution to work seamlessly, while a user comes at the platform. This similarly enables the recommendation engine – the chatbot – to assess a new consumer’s complexion, hair kind, make-up use and extra with a view to offer higher provider.

Manish discovered that the set of rules is skilled to understand and observe extra than 100K key phrases to be able to make product pointers. There is an answer on offer for everything. And the deeper a consumer forays into the platform, the greater the algorithm learns about their buy records, as well as the kind of personality they own so that it will make greater subtle sells.

“We deal with beauty as a records useful resource and so the platform works on the premise of client with context in which they use the product and understanding validation. This expertise comes in from experts, fellow customers who use the product and overview it and brand claims. All of that is in reality displayed with every product,” shares Manish. “It’s no longer approximately the emblem, but the right logo for the right client. That form of precision calls for statistics efficiencies.”

In reality, Manish is not afraid to show that the co-founders themselves are now also studying to wear makeup so that it will come to be more diligent at suggestions. “You’re surprised at how male co-founders run an innately female domain commercial enterprise? It is gender-agnostic is it no longer? Both can do an awesome task as long as they're diligent of their pointers.”

The Burgeoning Beauty Ecommerce Industry In India

Up till some years in the past, trust changed into a chief obstacle for beauty ecommerce to do well. This is so due to the fact, splendor, not like books and electronics, is an intensely personal preference for buyers. With players along with Flipkart, Myntra, and Jabong – a sure diploma of accept as true with already exists with the dealers, although it has to be mentioned that every one these gamers along side AmazonBasics simplest bring splendor gadgets as part of their coterie – they are not completely splendor-focussed.

Also, the splendor ecommerce zone has been majorly dominated by way of ladies buyers. In reality, it’s best from the final  years, that men’s beauty and grooming has visible a lot more play with entrants together with Beardo, Elitify, Bombay Shaving Club and Ustaraa (a sub-vertical of kitschy ecommerce player Happily Unmarried). At present, in phrases of heavily-funded gamers , we are able to call only some inclusive of Nykaa, which has raised a complete of $15.8 Mn in investment over 3 rounds and boasts of $forty three.Three Mn in GMV sales in 2017. Nykaa too commenced operations proper around the time Purplle did and has maintained its pole position in the beauty ecommerce marketplace.

Internationally, too, beauty ecommerce has visible a few names and large ticket offers. Vaniday, StyleSeat, and peer-to-peer splendor market Dotfully in addition to Spanish/Latin American Moira have acquired investment.

But, this tide is converting now. According to a document through advertising consultant firm RedSeer, the cosmetics enterprise in India is anticipated to implode soon. From $6.5 Bn today to $29 Bn by using 2025 at a CAGR of 25%. This way that India would come to be one of the pinnacle five worldwide markets, contributing about 5% of the global cosmetics market – both offline and on-line.

Given the truth that an HBR record lately concluded that India, with it’s 462 Mn Internet customers is poised to come to be the largest person base, it is no marvel that the beauty ecommerce vertical seems to coins in on the boom.

When it involves simply on line, the market size is drastically smaller and contributes about 2% to the total cosmetics market, the RedSeer document states. The on line cosmetics marketplace size stands at $50 Mn and with properly-established brands which includes Lakme, Revlon, MAC, Estee Lauder and more also coming into the digital route to reach their customers, competition is rife in splendor ecommerce.

Manish considers the distance to be healthily occupied, though. “Our core differentiator is the information play,” he says. “Our hints aren't primarily based on past person revel in or browser history. It is primarily based on what the customers on the time of logging in, and we try and offer them with those solutions. Our entire aim is to understand our clients higher via information.”

Manish additionally lists transparency with all stakeholders – customers, employees, and vendors – in addition to frugal unit economics that does not rely on heavy quantities of stock to stand out from the alternative splendor ecommerce competitors. “Our culture is constructed on honesty, be it disclosing our financial status or being open with our carriers concerning payments and shipments. We agree with in empowering girls and instill self assurance in them through beauty.”

Focussing On Reducing Return Rate And More: The Ecommerce Way Forward For Purplle

Beauty is as beauty does. This may also sound like a only superficial statement, but it holds particularly real in terms of the future of this splendor ecommerce platform.


Purplle has already onboarded across the world recognised brands together with Maybelline, Revlon, and so on. To make up a kitty of 650 manufacturers comprising 50,000 SKUs in overall, the founders at the moment are focussed on upping the ante. By completely importing brands to India through the Purplle platform. Vipera from Poland, KP from Paris and Moda Cosmetics from Istanbul are many of the lesser-acknowledged names on the platform. Just like Nykaa onboarded MAC, Bobbi Brown and Clinique, lately.

Manish informs me that registering a foreign brand is a 4-month system. And so, the focal point is to introduce 30 brands in India within the next  years. Take non-public label StayQuirky to the next level through coming into the entire-stack, toxin-unfastened make-up class with eyeliners, shadows, basis etc. Is any other milestone the Purplle crew is focused on.

The other center goal for the splendor ecommerce startup is to lessen go back charge on the platform, in addition to paintings on tightening the set of rules to refine product recommendation. On the issue of physical retail shops, Manish stays non-committal. “We are seeking to energy our offline stores thru information only, however no longer within the near future.”

For a splendor ecommerce agency started via three founders with zero enjoy inside the subject of ecommerce, the data-driven method seems to be the way forward to a glittery destiny for Purplle.

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