The Abu Dhabi Investment Authority (ADIA) has led a significant investment of $120 million in Mumbai-based beauty and grooming platform, Purplle, in July. This funding comes on the back of a remarkable 43% year-on-year surge in revenue for the fiscal year ending March 2024.
Purplle’s growth story is impressive, with revenue from operations increasing to Rs 680 crore from Rs 475 crore in FY23. The company has diversified revenue streams, including:
- Advertising and visibility services: Primary source of income
- Sales of own labels: Successful brands like Faces Canada and Good Vibes
- Royalties (from sellers)
- Subscriptions
- Support services
Interest on investments added another Rs 45 crore to its total income, taking it to Rs 725 crore in FY24, up from Rs 509 crore in FY23.
On the cost front, Purplle has implemented a controlled expense strategy, with advertising and business promotion accounting for 25% of total expenses. Employee benefit expenses have also increased by 12%, driven by a growing workforce. Despite this, the company has reduced its losses by 46% to Rs 124 crore in FY24 from Rs 230 crore in FY23.
Key Performance Indicators (KPIs)
- Revenue growth: 43% year-on-year
- Loss reduction: 46% in FY24
- Employee benefit expenses: 12% increase
- Enterprise value to revenue multiple: 15.8 times (as of March 2024)
Purplle’s strong performance, coupled with its growing brand portfolio, positions it well for future growth and profitability. With several similar firms having gone public, the competitive intensity in the sector remains high, making it essential for the company to maintain its strong revenue growth momentum and improve its margins further.