Purple Style Labs, an omnichannel luxury fashion platform for designer wear, has grown at a rapid clip with over eight-fold growth in the last two fiscal years (FY22- FY23). The company’s scale went up to Rs 372 crore in FY23 from Rs 44 crore in FY21. Moreover, the Mumbai-based company narrowed down its losses significantly during the fiscal year ending March 2023.
Purple Style Labs’ revenue from operations grew 2.1X to Rs 372 crore in FY23 from Rs 175 crore in FY22, its annual financial statements filed with the Registrar of Companies show.
Financials FY23
Founded in 2015 by Abhishek Agarwal, Purple Style Labs is an omnichannel luxury fashion platform where people can discover and buy Indian designer wear. The sale of designer fashion and lifestyle products is the primary source of revenue for the company.
The organisation’s overseas operations played a significant role in contributing to the total revenue, accounting for a substantial 40.2% share, with the remaining income generated from operations in India.
The procurement of materials for designer wear and other fashion products accounted for 51% of the total expenses. In line of scale, this cost surged 2.2X to Rs 214 crore in FY23 from Rs 97 crore in FY22. The company’s spending on advertising and marketing increased by 78.6% during the last fiscal year.
Its employee benefit costs, rent, professional fees, courier and shipping charges, and other overheads pushed the overall expenditure 85.9% to Rs 422 crore in FY23 from Rs 227 crore in FY22.
See TheKredible for the detailed expense breakup.
Expenses Breakdown
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- Cost of material consumed
- Employee benefit expense
- Sales and marketing
- Rent
- Professional charges
- Courier and shipping charges
- Others
The impressive growth and controlled cost management helped Purple Style Labs reduce its losses by 26.9% to Rs 38 crore in FY23 from Rs 52 crore in FY22. Its ROCE and EBITDA margin improved to -56% and -9% respectively. On a unit level, it spent Rs 1.13 to earn a rupee in FY23.
FY22-FY23
| FY22 | FY23 |
| EBITDA Margin | -26% | -9% |
| Expense/₹ of Op Revenue | ₹1.30 | ₹1.13 |
| ROCE | -62% | -56% |
Since the strategic acquisition of Pernia’s Pop-Up Shop in 2018, Purple Style Labs has opened 15 Pernia’s Pop-Up Studio experience centers globally. The company has raised around $50 million across rounds and is currently valued at $352 million. Purple Style Labs competes with ShopStyle, IndianRoots, Arvind Fashion, FabIndia, and Jivaana, among others.
