SUMMARY
- Purplle has managed to reduce its losses by 46% to Rs 124 crore in FY24 from Rs 230 crore in FY23.
- Its earnings from its core operations rose to Rs 680 crore in FY24 from Rs 475 crore in FY23.
- The company’s expenses grew to Rs 850 crore in FY24 from Rs 738 crore in FY23.
The ecommerce platform for beauty and personal care, Purplle, has secured $120 million in funding from the Abu Dhabi Investment Authority (ADIA) in July 2024. This funding came following a 42.5% increase in its revenue in FY24.
In addition to this significant growth, the Manish Taneja-led firm managed to reduce its losses by 46% during the same period. Its earnings from its core operations rose to Rs 680 crore in FY24 from Rs 475 crore in FY23, as per its consolidated financial statements available with the Registrar of Companies (RoC).
The company Mumbai-based company operates through two primary business models: a marketplace and its own brand portfolio, including Faces Canada and Good Vibes. The main revenue streams for Purplle include advertisement and visibility services, followed by the sales of its own brands, earnings from sellers (royalties), subscription fees, and support services.
Purplle also saw an increase in its interest income, reaching Rs 45 crore, which brought its total earnings to Rs 725 crore in FY24, a rise from Rs 509 crore in FY23.
As for the expenses, advertising and business promotion accounted for 25% of Purplle’s total expenses. However, this expense saw a decrease to Rs 209 crore in FY24 from Rs 266 crore in FY23. The company also expanded its workforce during FY24, leading to a 12% increase in the cost of employee benefits.
Purplle’s spending on materials, rent, information technology, legal services, secondary packaging, transportation, and other miscellaneous expenses totaled Rs 850 crore in FY24, an increase from Rs 738 crore in FY23.
The significant increase in scale and controlled spending, especially in advertising, played a crucial role in Purplle’s ability to reduce its losses by 46% to Rs 124 crore in FY24, as opposed to Rs 230 crore in FY23. Its return on capital employed (ROCE) and earnings before interest, taxes, depreciation, and amortization (EBITDA) margin also saw improvements, reaching -9.8% and -12%, respectively. On a per-unit basis, Purplle spent Rs 1.25 to generate a rupee in FY24.
