Purple Style Labs Upcoming IPO: Losses Soared 36% in FY25 Due to ESOP Costs

Recently, Purple Style Labs (PSL), the parent company of the luxury fashion marketplace Pernia’s Pop-Up Shop (PPUS), filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an upcoming IPO of ₹660 crore.

Purple Style Labs FY25 Financial Performance

PSL primarily generates revenue through the sale of fashion products on its omnichannel platform, along with earnings from logistics, styling, and other ancillary services.

According to PSL’s restated consolidated financial statements, the company’s operating revenue declined by 2.8% year-on-year to ₹490 crore in FY25, down from ₹504 crore in FY24. PSL’s losses in FY25 widened due to a ₹123 crore expense related to employee stock options (ESOPs). However, the company continues to expand its brand presence in the premium fashion space.

Revenue from the sale of goods dipped slightly to ₹483 crore in FY25. However, this decline was strategic, the company reduced its focus on lower-value products to improve profitability.

Rising AOV and GMV Indicates Operational Resilience

As a result, the average order value (AOV) increased by 42% to ₹56,106. Meanwhile, revenue from services dropped 58% to ₹65 crore as PSL scaled back consulting, styling, IT, and related offerings. Despite the dip in revenue, PPUS achieved a 26% increase in gross merchandise value (GMV), which rose to ₹588.3 crore in FY25 from ₹466 crore in FY24. India remained the largest contributor to GMV at ₹421 crore, followed by the US at ₹97 crore, the UK at ₹37 crore, and the rest of the world at ₹33 crore. While GMV from India and the UK saw moderate growth, the US and other international markets experienced a decline.

Also Read: Upcoming IPO: Purple Style Labs Files for ₹660 Crore IPO with SEBI

In terms of margins, PSL reported a Return on Capital Employed (ROCE) of -4.68% and an EBITDA margin of 8.60%. On a unit economics basis, the company spent ₹1.14 to generate ₹1 of revenue in FY25, compared to ₹1.10 in the previous year. The company’s current assets totaled ₹256 crore at the end of FY25, including ₹10 crore in cash and bank balances, and ₹160 crore worth of inventory.

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