In FY21, Purplle posts Rs 128 Cr revenue, losses jump over by 2X
- ByStartupStory | April 6, 2022
As more buyers from tier II and III cities moved online for their purchases due to the pandemic-led lockdowns, the financial year 2020-2021 changed the status quo for the beauty and cosmetics segment in India. During FY21, the beauty segment witnessed strong growth, even with relatively contracted demand due to emphasis on the purchase of essential commodities, online marketplaces.
Cosmetics marketplace Purplle, built on the lines of Nykaa, was one of the few platforms during the fiscal ended in March 2021 which managed to grow their scale.
The Mumbai-based company’s revenue from operations grew by 40.2% from Rs 91.4 crore earned in FY20 to Rs 128.2 crore during FY21. At the start of FY21 which funded its growth CAPEX during the year, Purplle had raised its Series C round led by Goldman Sachs right.
The eleven-year-old company operates as an omnichannel seller of beauty products and under its private label it also retails products but in FY21 as compared to 14.6% in FY20 these sales made up only 6.4% of its annual revenues. The company is moving towards a pure marketplace model and the sale of products contracted by 38% YoY to only Rs 8.2 crore in FY21 l, this previous decline was evident by this fact.
Across its platform is the largest revenue vertical for the Goldman Sachs-backed company, provision of advertising and visibility services to cosmetics brands, accounting for 61.7% of the annual revenues. Collection from these services grew by 52% from Rs 52.06 crore made in FY20 to Rs 79.02 crore in FY21.
For customers which offer a host of features including exclusive sales and free delivery incentives, Purplle also has a membership subscription. On its platform, these incentives also drive repeat customers and sale of these subscriptions grew by 150% YoY during FY21 to Rs 1.3 crore. On its platform which made up 30.5% of the total collection, the company also collects royalty from companies retailing. Such income grew by 61% from Rs 24.25 crore in FY20 to Rs 39.04 crore in FY21.
Further, from interest on its financial assets during the fiscal ended in March 2021, the company also collected non operating income of Rs 10.91 crore.
Purplle also harnesses social media instead of conventional media channels for visibility, following the cues of market leader Nykaa. The company spent extensively on customer acquisition and accounting for 29% of annual expenditure as a result advertising is the largest cost centre for Purplle. These costs grew by 54% from Rs 36.51 crore in the previous fiscal year FY20 to Rs 56.31 crore in FY21.
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