Purple Style Labs Limited (Avoid)

Highlights

Purple Style Labs Limited (PSLL) incorporated in 2015, is a multi-brand luxury omni-channel fashion platform. Under Pernia’s Pop-Up Shop (PPUS), they offers an extensive range of products across womenswear, menswear, jewellery, accessories and kidswear, with a focus on wedding and occasion wear, sourcing products from 1,109 active designer brands.

PSLL’s omni-channel platform includes physical Experience Centers and online platforms include website, mobile application, other telephonic & digital sales channels and events & exhibitions, through which carefully curated selections in luxury fashion are provided across India, US, UK, Australia, Canada, Middle East and South East Asia.

These presences have served a global base of more than 200,000 unique customers between FY24-26 and have had 19.14 mn unique visitors on online platform. In FY26, they served 66,713 customers with a total of 95,565 number of orders, while total GMV stood at Rs. 7,216 mn with AOV was Rs. 75,505 for the same period.

Out of the total proceeds of Rs. 6,800 mn, Rs. 3,711 mn would go towards investment in wholly owned subsidiary for expenditure towards lease liabilities of experience centers, and back-end offices in India, Rs. 1,389 mn goes towards funding sales and marketing expenses to be incurred by the company, and remaining Rs. 1,700 mn go towards funding company’s general corporate purposes.

Key Highlights

• The Indian apparel market is valued at Rs. 10.3 trillion in FY26, is projected to reach Rs. 15.3 trillion by FY31 growing at 8 pct CAGR, while luxury segment is set to grow faster at 11 pct growing from Rs. 645 bn to Rs. 1,096 bn between FY26-31. Indian wedding and occasion wear market currently valued at Rs. 2.0 trillion, is projected to grow at 13 pct CAGR to Rs. 3.7 trillion by FY31.

• PSLL acquired PPUS’s business, website, mobile app, IPRs, and goodwill in 2018 via an Asset Purchase Agreement with PQCPL, along with a License Agreement granting perpetual, exclusive, worldwide rights to the “Pernia’s” brand and its derivatives. Originally an online-only platform, PPUS has since transformed into an omnichannel brand with 14 Experience Centers globally (12 in India, one each in London and New York) alongside a strong online presence.
• PSSL’s omni-channel model integrates its online platform with physical Experience Centers ensuring a consistent, personalised shopping experience across both. Experience Centers enable product interaction, apparel try-ons and personalised styling advice from on-site stylist, complemented online by a wide portfolio, detailed descriptions and seamless payments, together driving customer satisfaction.
• PSLL’s Experience Centres are strategically located in high-street, high-end retail areas alongside premium stores to maximize visibility and attract a premium customer base. Alongside, Large Format Experience Centers (20,000-60,000 sq. ft.) have also been opened in Mumbai, Delhi, and New York, enabling a wider product range and immersive shopping experience, which also includes a dedicated ‘Pret’ sections for products between Rs. 15,000-Rs. 35,000 price range that broaden appeal beyond wedding shopping to casual wear and smaller occasions.
• PSLL offer Indian luxury Designer Brands visibility and access to a large, global customer base, along with control over brand image and pricing integrity. Their platform addresses key industry challenges around visibility, distribution and access to premium retail environments – enabling to sustain relationships with top Designer Brands while consistently growing their sales through PPUS Omni-channel.
• PSLL’s key growth strategies include (i) expand footprint in key luxury markets, (ii) deepen its existing customer base, (iii) increase and optimize product categories and designer Brand mix, and (iv) continue to focus on profitability and cost structure.
• The sales of the company have grown by 5.16 pct CAGR over FY24-26, while profit continues to remain negative with losses significantly increasing over same year. In FY26 the company reported sales of Rs. 5,578 mn rose 13.86 pct YoY. EBITDA of the company was down 27.62 pct YoY to Rs. 304 mn. In FY26 the company posted loss of Rs. 2,854 mn, widens 51.49 pct.

Key Risk

• PSLL’s business is highly concentrated on Indian wedding and occasion wear and vulnerable to changes in consumer preferences which could have an adverse effect on business and results.
• PSLL’s success depends on its Designer Brands public perception, recognition and ability to develop, maintain and strengthen these brands, any failure to preserve the value of brand and maintain reputation would adversely affect its business.

Financial Performance

Source: – RHP.

Valuation

Pernia’s Pop-Up Shop(Purple Style Labs Limited or PSLL) is one of the largest multi-brand luxury omni-channel fashion platform in India serving customers in India and abroad. The company provides carefully curated selections in luxury fashion, sourced from 1,109 Active Designer Brands. The Designer Brands for which products are available on their platform, include well-known Designer Brands such as Seema Gujral, Anushree Reddy, Amit Aggarwal, Rohit Gandhi & Rahul Khanna and the product categories span across womenswear, menswear, and others including jewellery, accessories and kids wear, with a focus on wedding and occasion wear. At the upper end of the price band of Rs. 575, the issue is priced at an EV/Sales of 9.7x its FY26 post issue capital. The issue appears to be fully priced. One can avoid this issue.

Disclaimer: The views shared in blogs are based on personal opinions and do not reflect the company’s views. Investment involves risk, and it is advisable to consult a financial advisor before making any investment through the app. The decision to invest is solely that of the investor, and the company or its communication cannot be held responsible for it.