Purple Style Labs, an omnichannel luxury fashion platform for designer wear, has demonstrated impressive growth in the fiscal year ending March 2022. The company’s revenue from operations grew four-fold to Rs 174.56 crore in FY22 from Rs 44.05 crore in FY21, with the sale of luxury clothing accounting for 84.9% of the total collections. The company also saw a surge in revenue from its personalized stylist services. However, cost of materials was the largest cost center, accounting for 42.8% of overall expenses. Despite the impressive growth in scale, Purple Style Labs’ losses grew 60.5% to Rs 51.73 crore in FY22. The company has raised $14 million in its latest round and aims to achieve a projected run rate of $120 million (Rs 980 crore) gross sales by March 2024 (FY24). However, the luxury fashion space, especially based on designer wear, can be a challenging market to crack due to customers’ desire for exclusivity.
It seems that Purple Style Labs has experienced significant growth over the past few years and is optimistic about its future prospects. The company’s revenue grew four-fold in FY22, and it claims to have achieved more than 100% year-on-year growth for the last two years. It closed FY23 with over $45 million in revenue (~Rs 360 crore) on a consolidated basis and achieved EBITDA breakeven at the same time. The recent $14 million funding round should provide the company with additional resources to continue expanding. The firm is projecting a run rate of $120 million (Rs 980 crore) gross sales by March 2024 (FY24), indicating that it is aiming for continued growth in the upcoming year.