Purplle’s loss jumped 290% from INR 52 Cr in FY21 due to a sharp rise in advertising expenses
Total revenue rose 63.5% to INR 227.4 Cr in FY22 from INR 139 Cr in FY21
Purplle’s total expenses rose 125.6% to INR 431.2 Cr in FY22, with advertising expenses surging 214% YoY
Mumbai-based beauty focused ecommerce startup Purplle’s net loss almost quadrupled to INR 203.6 Cr in the financial year 2021-22 (FY22) from INR 52 Cr in FY21 due to a sharp rise in its advertising expenses.
The Premji Invest-backed startup’s total revenue rose 63.5% to INR 227.4 Cr in FY22 from INR 139 Cr in FY21. Its operating revenue rose 1.7X to INR 219.8 Cr in FY22 from INR 128 Cr in Covid-disrupted FY21.
The ecommerce platform earns a majority of its revenue by selling services by offering visibility on online or offline platforms. Purplle earned INR 134 Cr from sale of services in FY22, constituting almost 60% of its total revenue. Meanwhile, it earned INR 35.6 Cr from sale of products in FY22, a 334% jump from INR 8.2 Cr in FY21. Purplle runs its private label called StayQuirky, which accounts for a major chunk of its sales.
Meanwhile, total expenses jumped 125.6% to INR 431.2 Cr from INR 191.1 Cr in FY21. Advertising and promotional expenses, which surged 214% to INR 176.9 Cr from INR 56.3 Cr in FY21, constituted 41% of the total expenses.The startup has been spending heavily to grab eyeballs in the competitive beauty and personal care segment. Early 2021, it roped in Bollywood actress Sara Ali Khan as the brand ambassador. In May last year, Purplle launched a new campaign called ‘Har Indian Ka Beauty Destination’ with Khan.
Employee benefit expenses also jumped 130.5% to INR 85 Cr from INR 36.9 Cr in the previous year. Employee benefit expenses mostly comprise employee wages, PF contribution, gratuity, and other employee welfare benefits. The startup also spent INR 65.6 Cr on logistics, packaging, payment gateway fees, electricity, water charges, provision for doubtful debts, foreign exchange, and others in FY22 as against INR 47.5 Cr in FY21.
In FY22, Purplle spent nearly INR 2 to earn every INR 1 from operations.
Purplle entered the unicorn club last year after raising $33 Mn in its Series E round from new investor Paramak Ventures, which is a South Korean VC firm, and existing investors Premji Invest, Blume Ventures, and Kedaara.
The startup, which competes with the likes of SUGAR Cosmetics, Mamaearth, and Plum, raised over $100 Mn in funding across two rounds in FY22 and also acquired the Indian business of cosmetics and skincare brandFaces Canada.
While Sugar Cosmetics reported a net loss of INR 75 Cr in FY22, IPO-bound Mamaearth reported a net profit of INR 19.8 Cr. While Vineeta Singh-led Sugar Cosmetics reported sales of INR 221.1 Cr in FY22, Mamaearth generated INR 931.7 Cr in sales.
As per an Inc42 report, the ecommerce market in the country is estimated to grow at 19% CAGR and reach a size of $400 Bn by 2030. Beauty and personal care segment is expected to see the fastest growth in the ecommerce sector.
