Luxury fashion platform Purple Style Labs (PSL), the parent company of Pernia’s Pop-Up Shop (PPUS), has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a proposed ₹660 crore initial public offering.
The company, which operates an omnichannel marketplace for premium fashion brands, reported a dip in revenues and widening losses in FY25. PSL’s operating revenue fell 2.8% year-on-year to ₹490 crore, compared to ₹504 crore in FY24. Losses deepened due to ₹123 crore in employee stock option (ESOP) expenses, pushing net losses up by nearly 36%.
Despite the financial setback, PSL continued to strengthen its position in the luxury fashion space. The company strategically reduced its focus on lower-value products, resulting in a 42% jump in average order value (AOV) to ₹56,106. At the same time, gross merchandise value (GMV) grew 26% to ₹588.3 crore, led by its Indian operations which contributed ₹421 crore. Internationally, the US generated ₹97 crore, while the UK and other markets contributed ₹37 crore and ₹33 crore respectively.
Revenue from services such as consulting, styling, and IT support declined 58% to ₹65 crore as PSL shifted its focus to core fashion retailing. On the margins front, the company reported an EBITDA margin of 8.6%, though its ROCE stood at -4.68%, reflecting the challenges of scaling profitability in a competitive luxury e-commerce segment.
As of March 2025, PSL held ₹256 crore in current assets, including ₹160 crore worth of inventory and ₹10 crore in cash balances. The IPO proceeds are expected to help the company strengthen its financials and fuel further expansion in India and abroad.
Summary
- IPO size: ₹660 crore
- Revenue (FY25): ₹490 crore (down 2.8% YoY)
- Losses: Up 36% due to ESOP costs of ₹123 crore
- AOV: ₹56,106 (up 42%)
- GMV: ₹588.3 crore (up 26%), led by India
- Margins: EBITDA 8.6%, ROCE -4.68%
Financial Highlights – FY25
- Revenue Decline: PSL’s operating revenue fell 8% YoY to ₹490 crore in FY25, compared to ₹504 crore in FY24.
- Net Losses: Losses deepened, primarily due to ₹123 crore ESOP-related expenses, pushing FY25 losses higher by 36% YoY.
- Revenue Mix:
- Sale of goods: ₹483 crore (slight dip due to reduced focus on low-value products).
- Services: ₹65 crore, down 58% as the company scaled back consulting, styling, and IT offerings.
Operational Trends
Despite revenue pressures, PSL demonstrated resilience through rising unit metrics:
- Average Order Value (AOV): Jumped 42% to ₹56,106.
- Gross Merchandise Value (GMV): Climbed 26% YoY to ₹588.3 crore, led by:
- India – ₹421 crore (largest contributor)
- US – ₹97 crore (decline YoY)
- UK – ₹37 crore (moderate growth)
- RoW – ₹33 crore (decline YoY)
Margins & Balance Sheet
- EBITDA Margin:60%
- ROCE: -4.68%
- Unit Economics: PSL spent ₹1.14 to earn ₹1 of revenue (vs ₹1.10 in FY24).
- Assets: Current assets at ₹256 crore, including ₹160 crore inventory and ₹10 crore in cash/bank balances.
Disclaimer:
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