Pernia Pop Up Shop Reports 52% Increase in Net Loss Ahead of IPO

New Delhi, India Aug 25, 2026 ALN: Purple Style Labs (PSL), the parent company of the luxury fashion platform Pernia’s Pop-Up Shop, has reported a significant widening of its consolidated net loss for the fiscal year ending March 31, 2026 (FY26). The net loss increased by 51.5%, reaching ₹285.4 crore, compared to a loss of ₹188.4 crore in the previous fiscal year. This alarming trend raises questions about the company's financial health and its strategy moving forward, especially as it prepares for an initial public offering (IPO).

Despite the increase in net loss, PSL's operating revenue saw a positive uptick of approximately 14%, rising to ₹557.8 crore from ₹489.9 crore in FY25. Additionally, when including other income of ₹9.2 crore, the total income for the fiscal year increased by 14.8% to ₹567.1 crore. This indicates that while the company is generating more revenue, it is simultaneously incurring higher expenses that are outpacing revenue growth.

One of the key performance indicators for PSL is its gross merchandise value (GMV), which reflects the total sales value for goods sold through its platform. For FY26, the GMV increased by 23% year-on-year to ₹721.6 crore. However, there was a notable decline in the contribution of international GMV, which fell from 28.38% in FY25 to 20.3% in FY26. Specifically, the GMV from the United States dropped from ₹97.4 crore to ₹76.8 crore, suggesting challenges in the international market despite the company's efforts to expand its presence, including the opening of a New York store in February 2026.

This comes despite the company opening its New York store in February 2026 and positioning international expansion as a key growth opportunity.

Purple Style Labs was founded in 2015 by Abhishek Agarwal and has since developed a multi-brand luxury omnichannel fashion platform. Pernia’s Pop-Up Shop operates as a direct-to-consumer (D2C) platform, complemented by 12 experience centers that allow customers to engage with the brand in a physical setting. The company offers a curated selection of luxury fashion sourced from over 1,100 active designer brands, including notable names like Seema Gujral, Anushree Reddy, Amit Aggarwal, and Rohit Gandhi & Rahul Khanna. The product range spans various categories, including womenswear, menswear, jewelry, accessories, and kidswear, with a particular focus on wedding and occasion wear.

In FY26, the company served a total of 66,713 customers, reflecting a 6% decline from the previous year’s 70,651 customers. This decline in customer engagement could be a significant concern for the business, especially as it seeks to attract investors ahead of its IPO.

Purple Style Labs has raised approximately $78 million in private equity funding from various investors, including Harish Shah Family Office and Masaba Gupta, among others. This capital has likely been crucial for the company's operations and expansion plans, but the significant losses reported may raise questions about the sustainability of its business model.

As part of its IPO preparations, PSL filed its red herring prospectus (RHP), which outlines the details of the offering. The IPO will consist solely of a fresh issue of shares worth up to ₹680 crore, with no offer for sale component, indicating that the company is looking to raise funds to support its growth initiatives rather than providing an exit opportunity for existing shareholders.

The draft IPO papers were submitted to the Securities and Exchange Board of India (SEBI) in September 2025, and the company received the necessary regulatory approval to proceed with the IPO in January. A significant portion of the net proceeds from the IPO is earmarked for funding lease liabilities associated with Pernia’s Pop-Up Stores’ experience center network. The remaining funds will be allocated to sales and marketing expenses, which are critical for driving growth and customer acquisition through FY30.

Zooming Into PSL’s Expenses

In analyzing the company's financials, it is essential to look closely at its expenses, which totaled ₹734.5 crore for FY26, reflecting a substantial 31% increase from ₹559.6 crore in the previous fiscal year. This increase in expenses raises concerns about the company's cost management and operational efficiency, especially in light of its widening net loss.

• Depreciation and Amortisation Expenses: This category saw a dramatic rise of 84.4%, reaching ₹100.7 crore in FY26, up from ₹54.6 crore in FY25. Such a significant increase may indicate that the company is investing heavily in its physical infrastructure, including its experience centers, but it also contributes to the overall financial strain.
• Purchases of Stock-In-Trade: This accounted for 47.6% of PSL's overall costs, with expenses in this area standing at ₹349.8 crore, marking a 15.6% increase from ₹302.6 crore in the previous year. This suggests that while the company is expanding its inventory, it must also manage the associated costs effectively to avoid further losses.
• Employee Benefit Expenses: Employee-related costs, which include wages, gratuity, provident fund contributions, and other benefits, amounted to ₹82 crore in FY26, reflecting a 23.9% increase from ₹66.2 crore in FY25. This rise in employee costs may be attributed to hiring efforts aimed at supporting the company's growth initiatives, but it also highlights the need for careful management of human resources.

The financial trajectory of Purple Style Labs raises important questions about its sustainability as it moves towards an IPO. While the increase in revenue and GMV is encouraging, the significant losses and rising expenses indicate that the company must address its operational challenges to attract investors and ensure long-term viability. As the luxury fashion market continues to evolve, the ability of PSL to adapt and innovate will be crucial in determining its success in the competitive landscape.