Purple Style Labs, the Mumbai-based parent company of luxury fashion platform Pernia's Pop-Up Shop, has taken a major step toward public listing by filing a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 660 crore through an initial public offering (IPO). The filing, made on September 22, 2025, marks a significant milestone for the expanding luxury fashion innovator, aiming to leverage capital markets for its next phase of growth.
Key Highlights of the Upcoming IPO
-
Offer Size and Structure: The IPO consists entirely of a fresh issue of equity shares with no Offer for Sale (OFS) component, targeting Rs 660 crore in fresh capital infusion.
-
Pre-IPO Placement: The company is considering a pre-IPO placement round to raise up to Rs 130 crore, which would reduce the IPO size proportionally.
-
Fund Usage: Rs 363.3 crore of the proceeds will be invested in its wholly-owned subsidiary, PSL Retail, primarily to cover lease liabilities for luxury experience centers and back-end office facilities across India.
-
Additional Capital Plans: Rs 128 crore will be earmarked for ramping up sales and marketing activities, while the rest of the funds will support general corporate purposes.
-
Market Presence: Purple Style Labs currently serves customers in over 100 countries with a curated portfolio of roughly 2.12 lakh stock-keeping units (SKUs) spanning women’s wear, men’s wear, fine jewellery, fashion jewellery, kids wear, and accessories from 1,312+ active designer brands.
-
Geographic Foothold: The company's flagship experiential store is in the UK, and it holds a strong market footing in the US, UK, and Middle East.
-
Financial Trajectory: Between FY23 and FY25, the company’s average order value grew impressively from Rs 39,499 to Rs 56,106, while improved cost discipline halved the sales and marketing expense ratio from 12.88% to 6.77% of revenue. Additionally, the quality of customers strengthened with average gross merchandise value (GMV) per customer increasing from Rs 59,023 to Rs 83,270.
-
IPO Management: Axis Capital and IIFL Capital Services are appointed as lead merchant bankers managing the public offering.
-
Shareholding Snapshot: Founder Abhishek Agarwal remains the largest shareholder with 27.1%, alongside other investors including Volrado Venture Partners and Singularity Growth Opportunities Fund.
These developments reflect Purple Style Labs’ ambition to capitalize on its brand equity, operational improvements, and expanding global footprint by inviting public investors to participate in its luxury fashion journey. The offering underscores both the rising consumer appetite for curated luxury and the company’s efforts to blend digital and experiential retailing at scale.
As the IPO unfolds, market participants will watch closely how Purple Style Labs balances growth investments with improving profitability amid ongoing challenges faced by luxury retail platforms globally. This Rs 660 crore IPO is set to be a notable event in the Indian luxury fashion and capital markets in late 2025.
Sources: The Economic Times, PTI Reports
