Purple Style Labs IPO
IPO Price Range: Not Announced Yet
Objectives of IPO
- The company’s total IPO size is up to ₹660 crore. This entire amount is currently structured as a fresh issue of equity shares.
- The company plans to utilize ₹363.29 crore towards meeting the expenditure for lease liabilities. This investment is intended to cover lease rentals for Experience Centers and back-end offices in India. The company currently operates 13 Experience Centers and three back-end offices in India through its wholly owned subsidiary, PSL Retail.
- The company will use ₹128 crore for sales and marketing expenses. These funds are earmarked for brand-building initiatives, including targeted marketing campaigns through digital media, endorsements, sponsorships, television advertising, influencers, and expanding the company's presence on social media platforms, particularly in international markets. In the last completed fiscal year (FY25), the company's total sales and marketing expenses were ₹33.17 crore, representing 6.77% of its revenue from operations.
- The company intends to deploy the balance funds towards general corporate purposes. This component offers management flexibility and may be used for various operational needs such as expenses incurred in the ordinary course of business, strategic initiatives, acquiring fixed assets (like furniture and fixtures), business development, and prepayment or repayment of debt.
- Note on Potential Pre-IPO Placement: The final amount raised through the fresh issue may be reduced if the company undertakes a Pre-IPO placement of specified securities aggregating up to ₹130 crore, subject to certain conditions, including that the placement does not exceed 20% of the size of the fresh issue.
Financial Performance of Purple Style Labs
The company’s financial performance shows strong operating growth countered by significant one-time losses.
Revenue grew steadily from ₹371.4 crore in FY23 to ₹510 crore in FY24, but slightly dipped in FY25 to ₹494. This dip was intentional, driven by a strategy to reduce lower-valued products to boost the average order value. This focus helped the core business become much more efficient, as the EBITDA margin consistently improved from 0.59% in FY23 to 8.57% in FY25, mainly by optimizing sales and marketing costs.
However, the reported loss widened sharply to ₹188.6 crore in FY25. This severe loss was primarily caused by a one-time, non-cash exceptional expense of ₹122.77 crore related to granting employee stock options. Excluding this, the net losses are ₹65.8 crore in FY25.
Meanwhile, total assets grew significantly to ₹498.3 crore by FY25, reflecting large investments in physical expansion and leased properties. Borrowings increased sharply by a CAGR of 55.4% to ₹112.79 crore, used to finance this expansion and meet rising working capital demands.
Strengths and Risks
Strengths
It operates one of the largest and fastest-growing multi-brand luxury fashion platforms in India by revenue in FY24. Its Total PPUS Gross Merchandise Value (GMV) grew from ₹466.09 crore in FY23 to ₹588.31 crore in FY25, reflecting a compound annual growth rate (CAGR) of 12.35%.
Despite overall losses, key operating metrics show significant improvement. The EBITDA increased sharply from ₹2.20 crore in FY23 to ₹41.99 crore in FY25, resulting in a substantial rise in EBITDA margin from 0.59% to 8.57%.
The average value of customer transactions is steadily rising, confirming high spending propensity. The PPUS Average Order Value (AOV) increased from ₹39,499.84 in FY23 to ₹56,106.44 in FY25, reflecting a 19.18% CAGR.
Repeat customers are contributing a rising share of business, enhancing future revenue predictability. Repeat customers represented 28.05% of the total customer base in FY25, up from 18.86% in FY23.
The business maintains a broad supply base, reducing single-brand dependency risk. As of March 31, 2025, it sourced products from 1,312 Active Designer Brands, with no single designer contributing more than 10% of Total PPUS GMV in FY25.
The company operates on a procurement model that generally acquires products only after receiving customer orders. This supports efficient working capital utilization, which was measured at ₹79.85 crore in FY25.
Risks
The company has consistently incurred significant losses, leading to a substantial deficit in shareholder equity. It reported a loss after tax of ₹188.55 crore in FY25 and carried negative retained earnings totaling ₹423.05 crore as of March 31, 2025.
Operations require continuous external funding due to persistent cash consumption. Net cash used in operating activities has been negative in all reported periods, amounting to ₹45.19 crore in FY25.
Revenues rely heavily on a single product segment, exposing the business to demand volatility. The womenswear category generated a substantial 75.66% of total PPUS GMV in FY25, with the overall business concentrated on Indian wedding and occasion wear.
While diversified, a core group of partners remains essential for meeting sales targets. The company depends on its top 25 designer brands, which collectively contributed 41.14% of its Total PPUS GMV in FY25.
Operations spanning 140 countries expose the business to geopolitical volatility and exchange rate fluctuations. Sales outside India constituted 28.38% of total PPUS GMV in FY25, and it lacks a formal hedging policy.
The efficiency of turning investment into cash has deteriorated rapidly. The Cash Conversion Cycle rose sharply to 123.57 days in FY25, compared to 69.09 days in FY24, showing capital is tied up for longer periods.
The company relies on debt financing, including significant lease liabilities for its experience centers. As of March 31, 2025, total borrowings were ₹112.79 crore, equating to a debt-to-equity ratio of 0.95 times.
How to Apply for Purple Style Labs IPO on INDmoney
- Download the INDmoney app and complete your KYC.
- Go to INDstocks → IPO, or just search “IPO”.
- Tap on Purple Style Labs IPO from the list of live IPOs.
- View key details like price band, lot size, and dates.
- Tap Apply Now and choose your number of lots.
- Use INDpay UPI for instant mandate tracking.
- Your funds will be blocked until the share allotment is finalized.
Purple Style Labs Shareholding Pattern
| Promoters & Promoter Group | 27.36% | |
| Name | Role | Stakeholding |
| Abhishek Agarwal | Promoter | 27.1% |
| Payal Kumari Agarwal | Promoter Group | 0.23% |
| Priyanka Agarwal | Promoter Group | 0.03% |
| Public | 72.64% | |
| Name | Role | Stakeholding |
| Volrado Venture Partners Fund II | Public | 2.9% |
| Abhinav Agarwal | Public | 2.25% |
| Singularity Growth Opportunities Fund I | Public | 1.93% |
| Rajesh K Soin | Public | 1.73% |
| Jitender Kumar Bansal | Public | 1.72% |
| Sheen Metals & Finvest Private Limited | Public | 1.7% |
| Rahul Kayan | Public | 1.7% |
| NB Ventures Limited | Public | 1.63% |
| Surendra Goyal | Public | 1.55% |
| Neeleshwar Bhatnagar | Public | 1.49% |
| Valuequest S C A L E Fund | Public | 1.42% |
| Mukul Mahavir Agrawal | Public | 1.42% |
| Binarystar Holdings LLP | Public | 1.14% |
| Others | Public | 50.06% |
About Purple Style Labs
It targets affluent global consumers. The company has served over 2,00,000 Unique Customers from FY23 to FY25. In FY25 alone, it managed 1,04,856 orders from 70,651 total customers. Its operational scale relies on an integrated model supported by 14 Experience Centers globally, which includes 13 locations in India and one in the UK. Digitally, its platform is significant, recording 18.57 million Unique Visitors in FY25. Although India is its primary sales region, international transactions across key markets like the US and UK contributed 28.38% (₹166.99 crore) to its total GMV in FY25. The operational team consists of 1,058 permanent employees as of March 31, 2025.
The company utilizes a multi-brand omni-channel platform that seamlessly integrates physical Experience Centers with digital sales to deliver a high-quality, personalized shopping experience. This arrangement offers Indian designer brands extensive visibility and a broad global customer base, allowing them to manage their brand image. For efficiency, the business model utilizes a low-inventory approach, often procuring products and facilitating delivery after an order is placed, which helps minimize inventory holding costs. Its future strategic direction focuses on four key areas: expanding its physical presence in key luxury markets; deepening customer loyalty and engagement; optimizing its product assortment by focusing on premium goods and expanding categories like real jewelry and menswear; and maintaining vigilance over profitability and cost management.
For more details, visit here: www.purplestylelabs.com
Frequently Asked Questions of Purple Style Labs IPO
Can we invest in Purple Style Labs IPO?
What would be the listing gains on the Purple Style Labs IPO?
What is 'pre-apply' for Purple Style Labs IPO?
Who are the promoters of Purple Style Labs?
The company's promoter is Abhishek Agarwal, who also serves as the Whole-Time Director and Chief Executive Officer. He holds 27.10% of the pre-IPO equity share capital on a fully diluted basis, totaling 1.91 crore (19,100,000) equity shares.
Who are the competitors of Purple Style Labs?
The company states there are no comparable listed peer companies of similar size, scale, or business model in India or internationally. Its FY24 revenue of ₹508 crore was lower than Louis Vuitton's ₹812 crore but exceeded Aza Fashions' ₹248 crore.
How does Purple Style Labs make money?
It earns money primarily through the sale of products via its multi-brand luxury omni-channel platform. In FY25, the sale of goods generated ₹483.39 crore of total revenue. The womenswear segment drove most sales, accounting for 75.66% of total PPUS GMV in FY25.