Purplle: A Rapidly Growing Omnichannel Beauty Platform

Purplle, an omnichannel beauty platform based in Mumbai, has experienced an impactful transformation over the past five years, characterised by significant growth, quick expansion, acquisitions, and steady fundraising efforts. The revenue growth of the company is remarkable, rising from Rs 128 crore in FY21 to Rs 1,367 crore in FY25. The fiscal year 2025 was particularly notable for Purplle, as its operating revenue more than doubled from Rs 680 crore in FY24 to Rs 1,367 crore in FY25, based on consolidated financial data from the Registrar of Companies (RoC).

Overview of Purplle’s Business Model

Founded in 2012, Purplle operates a dual business model that includes a third-party marketplace alongside an expanding portfolio of private labels. The owned brands feature Faces Canada, Good Vibes, Alps Goodness, Carmesi, and DermDoc. The company’s online platform serves over 10 million monthly active users, bolstered by nearly 20,000 offline touchpoints across India.

Revenue Breakdown

An analysis of revenue components indicates that products under owned brands were the main driver of growth, contributing 82.5% of operating revenue. Revenue from this category surged fourfold to reach Rs 1,129 crore in FY25. Conversely, income from marketing—which involves providing visibility and promotional services to third-party brands across Purplle’s platforms—declined by 22.2% to Rs 225 crore for the year. The remainder of the operational income was sourced from pro-rata royalty and membership fees. Additionally, Purplle reported Rs 45 crore in other income mainly from interest, leading to a total income of Rs 1,409 crore in FY25.

Contributions from Subsidiaries

Among its subsidiaries, Manash E-Commerce Private Limited was the largest revenue contributor, generating Rs 989 crore in FY25. Faces Canada, acquired in 2021, added Rs 373 crore, and Newgen Internet Private Limited (Glamrs) contributed Rs 4 crore to Purplle’s operational income.

Expense Analysis

On the expenditure side, the increase in product sales resulted in a substantial rise in procurement costs, which soared 5.6 times to Rs 671 crore in FY25. Employee benefit expenses saw a slight reduction of 7%, amounting to Rs 176 crore for the year. Advertising costs were significant, with Purplle spending Rs 218 crore, while transportation costs reached Rs 100 crore. Other general expenses, including rent, legal fees, and miscellaneous costs, raised the company’s total expenditures by 74% to Rs 1,478 crore in FY25 from Rs 849 crore in FY24.

Financial Performance Metrics

At a unit level, Purplle incurred Rs 1.08 to generate every rupee of operating revenue in FY25. Improvements were observed in the EBITDA margin and return on capital employed (ROCE), which stood at -7% and -4.1%, respectively. As of March 2025, the company’s current assets were valued at Rs 1,377 crore, including consolidated cash and bank balances of Rs 273 crore.

Funding and Future Prospects

To date, Purplle has successfully raised over $500 million in funding, including a $180 million Series F round orchestrated by a subsidiary of the Abu Dhabi Investment Authority (ADIA), with participation from venture firms like Premji Invest and Blume Ventures. The current growth trajectory is bringing Purplle close to the revenue figures Nykaa experienced at its IPO in FY21, potentially by FY26. This progress positions it well for a public offering, with managing expenses becoming more feasible as the scale advances. Procurement costs are anticipated to normalise, possibly falling to around 30-35% of sales in the beauty sector, reflecting product variations. There is confidence that Purplle has found a sustainable model for growth and is nearing profitability, ready to take a significant step forward following an IPO, especially if investors prefer to delay an offer for sale to facilitate further fundraising.