Mumbai-based luxury fashion firm Purple Style Labs has filed its draft red herring prospectus with Sebi to raise ₹660 crore via IPO. Know issue details, fund utilization, and company profile.
Purple Style Labs IPO: Luxury Fashion Brand Prepares for Stock Market Debut
Mumbai-based luxury fashion company Purple Style Labs Ltd has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) on September 22, 2025. The firm aims to raise ₹660 crore through a public issue comprising a 100% fresh equity share issuance, with no offer-for-sale (OFS) component.
The IPO will be managed by Axis Capital Limited and IIFL Capital Services Limited as book-running lead managers, while Kfin Technologies Limited will serve as the registrar to the offer.
IPO Structure and Fund Utilization
According to the DRHP details, Purple Style Labs plans to deploy the proceeds of the IPO in the following manner:
- ₹363.29 crore will be invested in its wholly owned subsidiary, PSL Retail, for lease liabilities of experience centres and backend offices in India.
- ₹128 crore will be allocated towards sales and marketing expenses to expand the brand’s visibility and consumer reach.
- The remaining funds will be utilized for general corporate purposes.
This strategic allocation highlights the company’s focus on strengthening its retail presence and scaling marketing initiatives to capture a wider luxury consumer base in India and abroad.
About Purple Style Labs
Founded in 2015, Purple Style Labs is positioned as an omnichannel luxury fashion platform, offering premium Indian designer wear and curated collections through both offline and online channels.
The company has built a strong footprint across major cities, with flagship stores in Fort, Mumbai, and South Extension, Delhi. It also operates outlets in Bengaluru, Hyderabad, London, and plans to expand to Linking Road, Mumbai, and New York, United States.
On the digital front, the brand has attracted 18.57 million unique visitors to its online platform, reflecting its growing influence among fashion-forward consumers.
In its corporate vision, Purple Style Labs states:
“We aim to expand the reach of India-based brands to the biggest luxury markets of the world. Through continuous expansion of our global footprint and product categories, we are building a carefully curated luxury fashion experience that provides global access to Indian design.”
The Bigger Picture: Luxury Fashion Meets Indian Capital Market
The company’s IPO move signals a significant moment for the Indian luxury retail and fashion sector, which has been witnessing growing interest from affluent millennial and Gen-Z consumers. With this fresh capital, Purple Style Labs is expected to:
- Expand its experience centres in metro and international markets.
- Strengthen its omnichannel retail presence.
- Invest in brand visibility and marketing campaigns.
- Position itself as a global representative of Indian luxury fashion.
Key IPO Highlights
- Company Name: Purple Style Labs Ltd
- Industry: Luxury Fashion Retail
- Incorporated: 2015
- IPO Size: ₹660 crore
- Type of Issue: 100% Fresh Equity Issue
- Face Value: ₹10 per share
- Use of Proceeds: Subsidiary investment, lease liabilities, sales & marketing, general corporate purposes
- Lead Managers: Axis Capital Limited, IIFL Capital Services Limited
- Registrar: Kfin Technologies Limited
Positive Factors
- Fresh Issue Only: Since there’s no Offer for Sale (OFS), all the money raised (₹660 crore) will go directly into the company for growth, not into promoters’ pockets.
- Clear Fund Utilization: A large portion (₹363.29 crore) is earmarked for retail expansion and lease liabilities, which indicates focus on strengthening long-term operations.
- Luxury Fashion Growth: The Indian luxury retail market is growing rapidly, driven by high-income millennials, Gen Z, and global interest in Indian designers.
- Omnichannel Presence: Strong online presence (18.57 million unique visitors) plus offline flagship stores in India and London give it brand strength.
- Expansion Plans: Upcoming stores in Mumbai and New York show international ambitions.
Risk Side
- Luxury Market is Niche: While growing, luxury fashion is still a smaller segment compared to mass fashion. Demand may fluctuate with economic slowdowns.
- High Marketing Spend: ₹128 crore is going to marketing, which could help brand visibility but may also pressure profitability if not managed well.
- Competition: Facing global luxury brands and established Indian designer houses could be challenging.
- IPO Pricing Unknown: Success will also depend on how aggressively shares are priced.
Financial Overview
Revenue Trends
- FY25: ₹490 crore
- FY24: ₹504 crore
- FY23: ₹450 crore (approx.)
- FY20: ₹45 crore
Note: The company experienced a modest decline in revenue from ₹504 crore in FY24 to ₹490 crore in FY25, primarily due to increased operating expenses and a significant rise in employee stock option plan (ESOP) costs.
Profitability
- FY25 Loss: ₹188.5 crore
- FY24 Loss: ₹47.7 crore
Note: The widening loss in FY25 is attributed to ESOP expenses amounting to ₹122.7 crore, which significantly impacted the bottom line.
Operational Highlights
- Average Order Value (AOV): Increased from ₹39,499 in FY23 to ₹56,106 in FY25, indicating a positive trend in customer spending.
- Gross Merchandise Value (GMV) per Customer: Rose from ₹59,023 in FY23 to ₹83,270 in FY25, reflecting enhanced customer engagement and purchasing behavior.
- Sales & Marketing Efficiency: The company reduced its sales and marketing expenses from 12.88% of revenue in FY23 to 6.77% in FY25, demonstrating improved cost discipline.
Market Presence
- Global Reach: Catered to customers from over 100 countries in FY25.
- Flagship Experience Centers: Operates in Mumbai, Delhi, Bengaluru, Hyderabad, and London, with plans to expand to New York.
- Online Platform: Attracted 18.57 million unique visitors in FY25.
Investment Considerations
Strengths
- Brand Recognition: Parent company of Pernia’s Pop-Up Shop, a well-known name in luxury fashion.
- Omnichannel Strategy: Strong online presence complemented by physical experience centers.
- Global Expansion Plans: Intent to enter international markets, including the U.S.
Risks
- Profitability Concerns: Persistent losses, primarily due to high ESOP-related expenses.
- Market Competition: Intense competition in the luxury fashion segment.
- Economic Sensitivity: Luxury fashion is susceptible to economic downturns and changing consumer preferences.
Verdict
While Purple Style Labs Ltd. has demonstrated growth in key operational metrics and maintains a strong brand presence, potential investors should carefully consider the company’s profitability challenges and the competitive landscape in the luxury fashion industry. Conducting thorough due diligence is essential before making investment decisions.