From Startup to Public: Purple Style Labs Aims Big with ₹660 Crore IPO
In a bold move toward scaling and institutionalizing growth, Purple Style Labs Ltd has filed its Draft Red Herring Prospectus (DRHP) with SEBI, seeking to raise ₹660 crore via a fresh issuance of equity shares.
This IPO marks a pivotal turning point: from a fashion-tech startup to a publicly traded luxury-fashion platform.
This article explores the company’s journey, its financial profile and strategy, and the risks and opportunities that prospective investors should watch closely.
Origins and Business Model.
Purple Style Labs (PSL), incorporated in 2015, has positioned itself as an omnichannel luxury fashion house combining online and offline presence.
At the core of its operations is Pernia’s Pop-Up Shop, a curated multi-brand platform championing Indian designer labels in apparel, jewellery, accessories, kidswear, and more.
The founder, Abhishek Agarwal, reportedly left his prior finance / engineering trajectory to focus on building a platform that institutionalizes Indian designer fashion in a scalable, technology-driven way.
He describes PSL’s mission as expanding the reach of India-based brands into major global luxury markets, while creating curated and experiential physical spaces underpinned by technology.
What sets PSL apart:
It combines digital reach (its website and online operations) with physical “Experience Centres” — large format stores in major cities (Mumbai, Delhi, Bengaluru, Hyderabad, and London)
Its e-platform reportedly drew 18.57 million unique visitors in FY25
It claims a global footprint already: international sales accounted for 28.4% of its gross merchandise value (GMV) in FY25, across over 100 countries
It also offers scale: over 2.1 lakh SKUs from more than 1,300 designer brands
Thus, PSL aims to be not just a marketplace but a “luxury fashion house” in its own right — a brand aggregator, curator, experiential retailer, and tech operator rolled into one.
Financial Performance & Growth Trajectory:
One of the most compelling stories in the DRHP is the revenue growth: PSL’s revenue jumped from ₹45 crore in FY20 to ₹508 crore in FY24, representing a CAGR of ~83%.
This growth outpaces many domestic and global peers in the Indian luxury fashion space.
Key financial metrics and trends:
EBITDA margins improved from about 0.6% to 8.6% in the span FY23 to FY25.
Average Order Value also rose sharply, from ₹39,499 in FY23 to ₹56,106 in FY25 .
However, losses have widened: for FY25, the company reported a net loss of ~₹188.5 crore, up from ~₹47.7 crore in FY24.
Hence, while growth is strong, profitability is still being worked on, and cost control will be key going forward.
On the funding side, prior to the IPO, PSL raised US$40 million in a Series E round to fuel expansion in India and overseas.
Investors included SageOne Flagship Growth OE Fund, Alchemy Long Term Ventures, Bajaj Holdings & Investment, Minerva Ventures, among others.
Pre-IPO ownership structure (from DRHP):
Promoter Abhishek Agarwal holds 27.1% pre-issue.
Other shareholders include Volrado Venture Partners (2.9%), Abhinav Agarwal (2.25%), Singularity Growth Opportunities Fund (1.93%)
The DRHP allows for a pre-IPO placement of up to ₹130 crore (i.e. ~20% of the fresh issue), though this is optional.
IPO Plans and Use of Proceeds
The entire ₹660 crore IPO is a fresh issue (i.e., no Offer for Sale by existing shareholders)
The company may reduce the fresh issue size if it conducts a pre-IPO placement.
Proposed use of net proceeds:
₹363.3 crore will be used by its subsidiary PSL Retail for lease liabilities of Experience Centres and back-end offices across India.
₹128 crore is earmarked for sales and marketing expenses
The balance will go toward general corporate purposes (capped at 25% of gross proceeds)
In terms of allocation, standard SEBI norms apply: at least 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), with 5% of QIB portion reserved for mutual funds.
Allocation for non-institutional and retail bidders is also structured as per norms.
The issue will be listed on both the NSE and BSE.
Lead managers are Axis Capital and IIFL Capital Services, with Kfin Technologies acting as the registrar.
Strengths, Risks & Investment Thesis.
Strengths & Tailwinds
Strong Growth Momentum.
The leap from ₹45 crore to over ₹500 crore in revenue in a few years demonstrates execution capability, brand traction, and market potential.
Omnichannel & Experience-Driven Model
The hybrid model offers synergies: physical stores help with brand experience, discovery, and high-ticket sales; digital channels scale reach and customer acquisition.
Global Reach & Aspirational Brand Play
Nearly a third of its business comes from outside India, giving exposure to foreign markets and a diversified customer base.
Improving Margins & Operational Leverage
The jump in EBITDA margins suggests better economies of scale and operating leverage coming into play.
Backing by Institutional Investors & Pre-IPO Funding
The recent $40M round and prior investors lend credibility and capital buffer.
Key Risks & Headwinds:
Sustainability of Profitability:
Despite margin improvement, the company is still reporting losses. Converting growth into consistent profits will be essential, especially post-listing.
High Fixed Costs & Lease Obligations
The reliance on physical “Experience Centres” carries heavy lease liabilities, which could stress finances if sales growth falters. The fact that the IPO proceeds largely go into servicing these obligations highlights this risk.
Luxury Consumer Sensitivity & Macroeconomic Risk
Luxury fashion is vulnerable to economic cycles, discretionary spending trends, and consumer confidence, especially in emerging markets.
Competition & Brand Differentiation:
The luxury and premium fashion space is crowded—both from domestic high-end labels and international luxury players. Maintaining differentiation, designer exclusivity, and premium experience is critical.
Execution Risk in International Expansion:
Scaling globally is resource-intensive—supply chain, logistics, local regulations, brand positioning all add complexity.
Outlook & What to Watch:
If Purple Style Labs can translate its growth runway into consistent profitability, it could emerge as a marquee luxury fashion IPO in India’s recent years. The upcoming quarters will be key:
Watch quarterly margins, and whether cost discipline continues even as expansion intensifies.
Monitor store productivity and whether Experience Centres justify their heavy capex and lease burden.
Keep an eye on international expansion metrics — whether foreign sales continue to grow and what margins they deliver.
The IPO subscription trends, especially from institutional investors, will also signal market confidence in PSL’s story.
In all, the ₹660 crore IPO is not just a capital raise — it’s a statement of intent. For investors, it offers exposure to a fast-evolving luxury-fashion platform in a growing Indian and global market. But as with all high-growth plays, it comes with execution risk. Diligence will be key.
Sudheendra Kumar ( Mobile /WhatsApp: 91-9820088394)
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