Purple Style Labs Limited, operating as Pernia's Pop-Up Shop (PPUS), has filed its Draft Red Herring Prospectus (DRHP) with SEBI. The company, a leading multi-brand luxury omni-channel fashion platform, seeks to raise funds to expand its physical retail footprint and fund marketing expenses.

Company Overview

Purple Style Labs is headquartered in Mumbai and was founded in 2015. It operates PPUS, one of India’s largest luxury omni-channel fashion platforms. The business curates products from 1,109 Active Designer Brands, offering 208,490 SKUs across womenswear, menswear, jewellery, accessories, and kidswear.

The company operates through three primary channels:

• Experience Centers: 14 global centers (12 in India, 1 in UK, 1 in US).
• Online Platforms: Serving customers in approximately 100 countries.
• Curated Events: Exclusive fashion events driving brand engagement.

Womenswear is the dominant category, contributing 77.70% of Total PPUS GMV in FY2026. The platform recorded 19.14 million unique visitors in Fiscal 2026.

Offer Details

The IPO is scheduled to open on 31-Aug-2026 and close on 02-Sep-2026. Listing is expected on 07-Sep-2026. Specific price band, issue size, and lot size details are not yet available in the DRHP.

Objects of the Issue

Proceeds will be utilized for:

• ₹371.13 Crores: Investment in subsidiary PSL Retail for lease liabilities of Experience Centers and back-end offices.
• ₹138.90 Crores: Sales and marketing expenses, including digital campaigns and influencer collaborations.
• General Corporate Purposes: Business development, debt prepayment, and other Board-approved expenses.

Financial Highlights

Revenue from operations grew to ₹557.84 crores in FY2026 from ₹489.91 crores in FY2025. However, the company reported widening losses, with PAT at -₹285.40 crores in FY2026. Total equity turned negative at -₹52.28 crores as of March 31, 2026.

Risk Factors

• Widening Losses: Loss after tax increased from ₹477.10 million in FY2024 to ₹2,853.99 million in FY2026. Negative retained earnings stood at ₹7,102.86 million.
• High Debt Burden: Total borrowings were ₹3,714.02 million as of March 31, 2026. The Debt Service Coverage Ratio (DSCR) was critically low at 0.08.
• IP Disputes: The company received a termination notice in January 2026 regarding the License Agreement with Pernia Qureshi Consultancy Private Limited, posing risks to the core brand identity.
• Negative Cash Flows: Operating cash flows were negative in all three fiscal years, indicating reliance on financing activities for liquidity.
• Category Concentration: Heavy dependence on womenswear (77.70% of GMV) and Indian Experience Centers (74.72% of GMV) exposes the business to demand shifts.

Valuation & Peer Comparison

Specific peer comparison data and valuation multiples are not available in the provided DRHP extract. Given the loss-making status and negative equity, traditional P/E or P/B ratios are not applicable. Investors may look at Price-to-Sales or EV/GMV multiples for benchmarking against comparable luxury fashion platforms.

Bottom Line

Purple Style Labs presents a high-risk, high-reward proposition. While it holds a strong brand position in India’s luxury fashion segment with growing GMV and AOV, investors must scrutinize the widening losses, negative equity, and ongoing IP disputes before participating.