Pernia’s Pop Up Shop’s Parent Crosses INR 500 Cr Revenue Mark In FY24

Luxury house of brands startup Purple Style Labs (PSL) saw its operation revenue cross the INR 500 Cr mark in the financial year 2023-24 (FY24). Its top line surged 36.4% to INR 507.8 Cr from INR 372.4 Cr in FY23.

While it earned INR 492 Cr from the sale of products, the rest came from the sale of services.  The startup generated INR 319.5 Cr from sales in India and INR 172.5 Cr from overseas sales. 

Despite the rise in revenue, the fashion brand saw its net loss rise. It posted a loss of INR 45.7 Cr in FY24, up 19.9% from INR 38.1 Cr in the previous year. However, it was able to reduce its cash burn.

The startup’s EBITDA loss for the year under review stood at INR 17.7 Cr as against an EBITDA loss of INR 23.8 Cr in the previous year. EBITDA margin improved 3 percentage points to -3% from -6% in FY23.

Founded in 2015, Purple Style Labs is a luxury fashion house that counts Indian designer brands like Pernia’s Pop Up Studio & Shop, Wendell Rodricks, Hemant Trevedi in its portfolio. It sells its products both online and offline. It has a subsidiary in the UK as well. 

In 2018, Purple Style Labs acquired Pernia’s Pop Up Shop and has since expanded to over 15 experience centers across major Indian cities and in London. 

Earlier this week, the startup raised $40 Mn in its Series E funding round led by SageOne Flagship Growth OE Fund, Alchemy Long Term Ventures Fund, Bajaj Holdings & Investment, and Minerva Ventures Fund. The round also saw participation from celebrities like Salman Khan and Sachin Tendulkar.

The capital would be used to fuel the startup’s aggressive expansion plans, both domestically and internationally. Besides, a part of the freshly raised funds would also be deployed for strengthening its omnichannel capabilities. 

Zooming Into The Expenses

In line with the top line growth, Purple Style Labs’ expenses increased 31.6% to INR 555.2 Cr in FY24 from INR 421.9 Cr in the previous year. 

Employee Benefit Expenses: The startup spent INR 58.9 Cr towards employee benefits, up 33% from INR 44.3 Cr in FY23. 

Advertising & Promotional Expenses: The spending under this head shot up 13% to INR 57.1 Cr in FY24 from INR 50.5 Cr in the previous year. 

Rent: Rental expenses during the year under review grew 30% to INR 45.2 Cr from INR 34.8 Cr in FY23.

In February this year, Purple Style Labs rented Zara’s former flagship store in the 118-year-old Ismail Building in South Mumbai. Zara closed the store citing high expenses. Purple Style Labs has leased the 60,000 sq ft space for a five-year period and it will spend INR 36 Cr annually.