Purplle, the beauty-focused ecommerce marketplace, witnessed a substantial increase in its operating revenue, approaching the INR 500 Cr mark for the fiscal year ending on March 31, 2023. The company’s operating revenue or sales amounted to INR 474.9 Cr in the financial year 2022-23 (FY23), marking a noteworthy growth of 116% from the INR 219.8 Cr recorded in FY22.
Established in 2012 by Manish Taneja and Rahul Dash, Purplle specializes in the sale of beauty products and appliances. The platform offers a range of products from various direct-to-consumer (D2C) brands, such as Plum, WOW Skin Science, mCaffeine, Maybelline, and SUGAR Cosmetics.
The sales of its products contributed 51% to the startup’s operating revenue, amounting to INR 247 Crore. This figure was significantly lower at just INR 35.6 Crore in the fiscal year 2022 (FY22).
As an e-commerce marketplace, the startup generates revenue by advertising products from other brands on its platform. In FY23, Purplle garnered INR 227.9 Crore from this source, constituting nearly 48% of its total operating revenue. This figure was INR 184.2 Crore in FY22.
Taking into account other sources of income, the overall income witnessed a remarkable 124% increase, reaching INR 508.6 Crore in the reviewed year compared to INR 227.4 Crore in the preceding fiscal year.
Despite the increase in revenue, Purplle experienced a 13% growth in net loss, reaching INR 230 Crore from INR 203.6 Crore in FY22.
The startup’s overall expenses surged by 71%, reaching INR 738.3 Crore, up from INR 431.2 Crore in FY22.
Advertising expenses constituted 36% of Purplle’s total expenditure in the reviewed year, amounting to INR 266.5 Crore. This reflected a 51% increase from the INR 176.9 Crore spent on advertising in FY22.
In FY23, the startup allocated INR 170.5 Crore towards employee costs, marking a 100% surge from the INR 85.1 Crore spent in the preceding fiscal year. Employee benefit expenses encompass various components such as salaries, PF contributions, gratuity, and ESOP expenses.
Procurement expenses soared over 500%, reaching INR 82.8 Crore in FY23 from INR 12.5 Crore in the previous fiscal year.
The EBITDA margin showed improvement, narrowing to -41.56% in the reviewed year compared to -84.9% in the preceding fiscal year. On a unit economics basis, the startup incurred INR 1.5 to generate every rupee from its operations.
To date, Purplle has secured a cumulative funding of $290 million and boasts notable backers such as Premji Invest, Peak XV Partners, and Kedaara Capital. The company joined the unicorn club in 2022, following a $33 million funding round led by Paramak Ventures.
The startup acquired the cosmetics and skincare brand Faces Canada in December 2021.
Earlier this year, Purplle reportedly raised $50-60 million from Abu Dhabi Investment Authority (ADIA) in a round that included a mix of primary and secondary investment.
