Purplle’s FY23 Sales Inch Closer To INR 500 Cr Mark, Loss Widens To INR 230 Cr

Beauty ecommerce marketplace Purplle’s operating revenue more than doubled to near the INR 500 Cr mark during the year ended March 31, 2023. The startup’s operating revenue or sales stood at INR 474.9 Cr in the financial year 2022-23 (FY23), an increase of 116% from INR 219.8 Cr in FY22. 

Founded in 2012 by Manish Taneja and Rahul Dash, Purplle sells beauty products and appliances. It sells products of several D2C brands, including Plum, WOW Skin Science, mCaffeine, Maybelline and SUGAR Cosmetics, on its platform.

At INR 247 Cr, revenue from the sale of its products accounted for 51% of the startup’s operating revenue. This number stood at a mere INR 35.6 Cr in FY22.

Being an ecommerce marketplace, the startup also earns revenue through advertisement of products of other brands on its marketplace. Purplle earned INR 227.9 Cr from this in FY23, almost 48% of its operating revenue. This number stood at INR 184.2 Cr in FY22.

Including other income, total income surged 124% to INR 508.6 Cr during the year under review from INR 227.4 Cr in the previous fiscal year.

However, Purplle’s net loss grew 13% to INR 230 Cr from INR 203.6 Cr in FY22 despite the rise in its revenue.

Where Did Purplle Spend?

The startup’s total expenditure grew 71% to INR 738.3 Cr from INR 431.2 Cr in FY22.

Advertisement Expenses Zoom: At INR 266.5 Cr, advertising expenses accounted for 36% of Purplle’s total expenditure during the year under review. Ad spending grew 51% from INR 176.9 Cr in FY22.

Employee Benefit Expenses Double: The startup spent INR 170.5 Cr on employee costs in FY23, an increase of 100% from INR 85.1 Cr in the previous fiscal year. Employee benefit expenses include employee salaries, PF contributions, gratuity, and ESOP expenses. 

Procurement Expenses Surge: The startup’s procurement expenses increased over 500% to INR 82.8 Cr in FY23 from INR 12.5 Cr in the previous fiscal year.

EBITDA margin improved to -41.56% during the year under review from -84.9% in the previous fiscal year. On a unit economics basis, the startup spent INR 1.5 to earn every rupee from operations. 

Purplle has raised a total funding of $290 Mn till date and counts the likes of Premji Invest, Peak XV Partners, and Kedaara Capital among its backers. It entered the unicorn club in 2022 after raising $33 Mn in a round led by Paramak Ventures.

In December 2021, the startup acquired cosmetics and skin care brand Faces Canada.

Earlier this year, Purplle reportedly raised $50-60 Mn from Abu Dhabi Investment Authority (ADIA) in a round which was a mix of primary and secondary investment.

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