Purplle eyed by private equity giants as India’s beauty market surges

Indian online retail platform Purplle Cosmetics is reportedly being assessed by private equity giants KKR, TPG Growth, and ChrysCapital for a minority stake acquisition. The deal would boost Purplle’s value to approximately US$1.5 billion as the investment is placed at around US$230 million.

The acquisition arrives amid a boom in India’s beauty and personal care market, which is forecast to reach US$34 billion by 2028, up from US$21 billion in 2024, demonstrating a projected CAGR of 10–11%.

The World Economic Forum in Davos this week has also been a source of new collaborations in the region. After discussions with the Telangana government, L’Oréal announced it will launch the world’s first beauty-tech hub in Hyderabad, India. The initial investment is set at over ₹35 billion (US$383.4 million), and the tech hub is scheduled to start operations in November 2026.

Online beauty and its buyers

Purplle launched in 2012 and has carved out a space in India’s beauty e-commerce landscape. The reported acquisition positions Purplle to catch up with major competitors like Nykaa, which has been active in collaborating with international companies — such as Estée Lauder and L’Oréal Paris — looking to expand into India amid rapid market growth.

KKR, TPG Growth, and ChrysCapital’s potential investment emphasizes a strategic focus on India’s consumer market. TPG Growth has a history of successful investments in the region, previously exiting its stake in Nykaa at a significant profit. ChrysCapital holds a stake in WOW Skin Science, while KKR holds a stake in Vini Cosmetics.

International spotlightIndia’s beauty market is set to hit US$34 billion by 2028, fueled by e-commerce growth.

India’s Ministry of Commerce and Industry reported that total exports of merchandise and services grew 12.7% year-over-year, placing it at an estimated US$73.80 billion. Rapid growth trends have made India an increasingly attractive destination for international market expansion in the eyes of beauty giants like L’Oréal.

L’Oréal’s announcement of the Hyderabad beauty-tech hub opens doors for future collaborations in the region. The center will develop digital tools, artificial intelligence-driven solutions, and advanced analytics. All these technologies will be deployed across L’Oréal’s offices and manufacturing units worldwide.

Telangana Minister of Information Technology Sridhar Babu said the government is fully committed to supporting multinational companies and positioning Hyderabad as a preferred destination for global capability centres (GCC). He explained that the state is emerging as a leader in the GCC ecosystem across sectors such as med-tech and health-tech, but is also branching into new spaces such as beauty-tech.

L’Oréal, which has been one of the frontrunners in India’s beauty boom, has integrated multiple of its subsidiaries into the country’s market over the past few years. Following the successful performance of CeraVe in its two-year partnership with Nykaa, it launched La Roche-Posay in 2025, diversifying its dermatological beauty offerings.

L’Oréal CEO Nicolas Hieronimus has said the company intends to double its business in India in the coming years. He noted that the company’s factories already manufacture 95% of what they sell in India, highlighting the region as a strategic distribution market.

Nykaa’s 2025 investor presentation projected that India will become the world’s third-largest economy by 2030. The report also indicates that the country’s e-commerce market has grown from US$25 billion in 2020 to US$60 billion in 2025.

With an online shopper base of 270-280 million people in 2025, and beauty and fashion making up an estimated 35% of India’s online shopping market, the Nykaa report forecasted India’s online beauty market to triple by 2030.

Luxury by the dozen

While rapid growth in India’s beauty market is driving significant industry traffic to the country, analysts also warn of high market saturation. Many international mid-tier imports are marketed as “luxury goods,” including brands like Lush, Bath & Body Works, and The Body Shop. However, this necessitates their competing for consumers in the same demographic as luxury goods such as Chanel or Yves Saint Laurent.

“The definition of ‘luxury’ in India is very vague. At first glance, any imported brand may appear as a luxury brand, but it is not. It may be prestige, but not as luxury as, for example, Chanel,” Innova Market Insights’ project lead for Beauty Personal Care & Household division previously told Personal Care Insights. She warned that standing out in an increasingly crowded market may prove difficult.