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A Tech-powered Luxury Fashion House

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Executive Summary

• Purple Style Labs (PSL) is India’s fastest growing Luxury Fashion House with omni-channel presence
Business • PSL acquired Pernia’s Pop-Up Shop (PPUS) in 2018 to become the market leader in Luxury E-commerce
Overview • Leveraging strong online presence, PSL setup experience studios in Mumbai, Delhi, Bengaluru and Kolkata
• Pernia’s Pop-Up Studio also opened its first ever international location in Mayfair, London in Nov 2019

• PSL is targeting a USD 9 Bn market using a roll-up strategy of acquisitions in both demand and supply side
TAM & • Within 4 years of acquiring PPUS, PSL generated 50x value for the company on its investment
Expansion
• Riding on the success of scaling PPUS, PSL has started investing in designer brands to build control
Strategy
• PSL plans to expand the market by leveraging the brand equity of designers for the aspirational customers

• PPUS aggregates 700+ top Indian designers/ luxury brands with 45%+ take rate without buying inventory
Unit • PSL also operates E-commerce websites of 40+ top designer brands on a 25% revenue share model
Economics
• Current Gross Sales run-rate is USD 65Mn+ with 16%+ contribution margin and 70% international online sales
& Traction
• PSL plans to hit USD 100Mn+ Gross Sales run-rate by 2023 and USD 200Mn+ by 2025 with 15% EBITDA

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PSL plans to grow to USD 200Mn Gross Sales by 2025

250.0

213

200.0
Gross
Sales (GS)
153
150.0
Gross
Profit

100.0 91.4 90
Contribution
Margin 62
48
50.0 37 34.5
Overall 30 30
EBITDA 12 13.7 13.9 18
9.9 5.6 2.3 5.3
4.0 1.7 0.3 4.0 0.7 4.3 1.5 0.1
0.0
-1.2 -1.7
(In USD Mn)
-50.0

Financial Year FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23E FY 23-24P FY 24-25P

PPUS Gross Profit (% GS) 42% 40% 38% 37% 38% 41% 42%

Contribution Margin (% GS) 8% 10% 12% 15% 15% 20% 23%

EBITDA Margin (% GS) -31% -18% 1% 6% 6% 12% 14%

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Indian Designer Brands need Technology and Business Management

“ The one key reason why designers in India haven’t been able to
scale up is because they lack a CEO, or business head, who can
”
manage their creativity and make it commercially viable

- Arun Gupta, President, Future Ventures, which owned a 22.86% stake in Anita Dongre Designs in 2012
(Note: General Atlantic invested in House of Anita Dongre in 2013 making it the first fashion
house in India to be invested in by a leading global growth investment firm)

UNORGANISED MARKET LACK OF TECHNOLOGY LIMITED OUTREACH

The Indian Premium Fashion Technology adoption and omni-channel Brand Marketing is currently limited to
Industry is a highly fragmented and business model can better leverage content and social media platforms and
unorganized market with nobody data analytics to respond faster to lacks usage of performance marketing
owning more than 1% market share moving trends and consumer behavior especially for global expansion

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PSL targets a current addressable market of ~ USD 9 Bn

Price Market Market

Key Points Price Tier Key Points
Tier (USD Bn) (USD Bn)

ETHNIC COSTUME
~18.6 8.5
WEAR JEWELLERY

• Primarily led by Indian designers like Manish • Highest growth segment due to
ASP > Malhotra, Rohit Bal, Tarun Tahiliani etc increased demand of trendy products
~0.6 ASP > USD 50 1.3
USD 500 • Multi-brand: PPUS, Aza, Ogaan, Ensemble • Premium market share is currently
15% but is growing faster than mass
USD • PSL’s current core segment in Online
~1.0 • EBO’s account for 90% of this segment
150-500 ASP < USD 50 7.2 • Extremely low ASP with high returns
• MBO’s market share can grow from 10% to 30%
FOOTWEAR &
11.2
• Next key emerging segment for PSL BAGS
USD • Only USD 0.5 Bn is organized market
~4.6
40-150 • Both domestic and foreign brands entering • Strong manufacturing base in India
• EBO’s and MBOs market share is 50% and 35% FW > USD 50 • Lot of upcoming brands in segment
1.2
Bags > USD 100 • Highly unorganized sector in India
• Premium is only 10% of the market
• Indian ethnic market is largely in this segment
USD <40 ~12.4
• Highly crowded space with high returns online FW < USD 50
10.0 • Extremely crowded space in online
Bags < USD 100

Only 7% of the PSL’s market is currently serviced by Multi-Brand Platforms as opposed to 30%+ in other price tiers
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PSL has surpassed all the competitors in just 4 years

Pernia’s Pop-Up Shop has scaled to 50x within 4 years of acquisition leaving the competition behind

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PSL aspires to be India’s largest luxury fashion house

Fashion House of 70+ brands Fashion House of 20+ brands Marketplace of Designers Marketplace of Designers
Creating Synergies Acquired Net-a-porter Premium E-Commerce Omni Channel integration
Vertical Integration Acquired YOOX group as well International Distribution Global Outreach
~400 Bn USD market cap ~80 Bn USD market cap Acquired by YOOX Group ~4 Bn USD market cap

PSL is best positioned to expand Indian fashion and designer brands at a global scale

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PSL’s Supply and Demand Levers

1000+ DESIGNER BRANDS THREE-PRONGED DISTRIBUTION

Apparels, Accessories, Fashion Jewellery, PSL has delivered 50x growth of Pernia’s Pop-Up Shop
Home and Lifestyle Categories in last 4 years since the acquisition in 2018

E-Commerce Multi-Brand Platform

Omni-Channel Experience Stores

Top 50+ Marquee Designer Brands Purple E-Commerce Web Store

150+ Mid Size Designer Labels

2Mn+ followers on USD 65Mn+ Gross
social media channels Sales run-rate
Wide Base of 800+ Niche Designers 2 Mn+ monthly visitors 45%+ Take Rate
on PPUS Platform of the Gross Sales

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PERNIA’S POP-UP SHOP – Multi-Designer E-commerce Platform

HIGH AVERAGE HIGH LOYALTY WITH INTERNATIONAL LOW RETURNS &

ORDER VALUE CUSTOMERS SHOPPER BASE CANCELLATIONS
USD 350 (~INR 25K) Over 40% repeat rate 70% of Online Sales Less than 5%

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PERNIA’S POP-UP STUDIO - Omni-channel Experience Centers (India & London)

OMNI-CHANNEL LOCATIONS FASHION HUBS INVENTORY LIGHT

Touchscreens & consultation 2000-10000 sq.ft. size in Mumbai (5), New Delhi (3), Asset light with more than
from in-store stylists luxury streets of top cities Bengaluru (1), Hyderabad (1), 80% products on consignment
Kolkata (1), London (1)

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PURPLE WEB STORE – E-commerce solution for luxury brands

BUSINESS MODEL REVENUE OUR SERVICES TECHNOLOGY

Revenue Share model 25% share of the sales Technology and user growth In-house developed omni-
with top Indian designers generated from website performance marketing channel technology stack

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PERNIA’S POP-UP SHOP – Online User Growth & Returning Customers

The platform has an average of ~40% repeat customers

10000 100%
9500
9000
8500
8000 80%
No. of Online Customers

7500
7000
6500
6000 53% 53% 55% 60%
5500 48% 48% 48% 49% 48%
5000 46% 47% 44% 45% 45%
42% 41% 42% 41% 42% 43% 40%
4500 39% 43%
4000 36% 40% 38% 40%
40% 40%
3500 37%
3000
2500
2000 20%
1500
1000
500
0 0%
Sep-18

Sep-19

Sep-20

Sep-21
Nov-18

Nov-19

Nov-20

Nov-21
Jul-18

Jul-19

Jul-20

Jul-21
Mar-18

Mar-19

Mar-20

Mar-21

Mar-22
May-18

May-19

May-20

May-21

May-22
Jan-18

Jan-19

Jan-20

Jan-21

Jan-22
No. of Returning No. of New Repeat % of
Customers Customers Customers

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PERNIA’S POP-UP SHOP – Customer Lifetime Value to Acquisition Cost (LTV:CAC)

The platform has a high 12x LTV/CAC ratio over a 5-year period

PPUS Online Key Metrics Year 1 Year 2 Year 3 Year 4 Year 5

Average Order Value (AOV) $250 $400 $400 $400 $400

Gross Profit (GP) $100 $160 $160 $160 $160

Retention Cost $0 $40 $40 $40 $40

Operations/Shipping Cost $20 $20 $20 $20 $20

Contribution Margin (CM) $80 $100 $100 $100 $100

Annual Retention % 100% 50% 45% 40% 35%

Annual Order Frequency 1.5 2.0 2.5 3.0 4.0

Lifetime Value (LTV) $120 $100 $112 $120 $140

Customer Acquisition Cost (CAC) $50

LTV:CAC Ratio 2.4 4.4 6.7 9.1 11.9

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 PSL’s Overall Performance Report and Revenue Projections

Revenue Growth in Gross Sales (USD Mn) FY24P Total - USD 153 Mn
Run-rate - USD 185 Mn
Online/Offline - 55%/45%

7.8

WEB STORE/WR/HT
FY23P Total - USD 92 Mn 6.6
Run-rate - USD 120 Mn 19.3
PPUS ONLINE
Online/Offline - 60%/40% 5.4
17.1
PPUS OFFLINE
4.8 15
3.8

FY22 Total - USD 37 Mn 12.9 12.9

2.9
Run-rate - USD 60 Mn
11.1
Online/Offline - 70%/30% 2.3 19.3
FY21 Total - USD 12 Mn 10
1.6 17.1
FY20 Total - USD 10 Mn Run-rate - USD 18 Mn 9.4
FY19 Total - USD 4.0 Mn 1.1 15
Run-rate - USD 15 Mn Online/Offline - 70%/30% 8.3 12.9 12.9
Run-rate - USD 6.5 Mn 0.9
Online/Offline - 60%/40% 6.2 10.7
Online/Offline - 65%/35% 0.6
4.8 7.7
0.6 0.6 0.6 5.9
1 1 1.2 1.4 0.5 3.1 4 4.5
0.45 0.7 0.7 1.3
1.7 1.2
2 0.5 1.2
1.9 2.3
1.5 0.8
0.5 0.5 0.6 0.8 0.1 1.8 2.6
Indian FY Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23E Q2’23P Q3’23P Q4’23P Q1’24P Q2’24P Q3’24P Q4’24P

PPUS Orders # 967 1,505 2,502 3,802 3,862 4,348 6,136 8,073 4,201 6,778 8,197 9,961 9,766 17,324 21,505 26,926 31,200 38,400 46,000 54,000 54,000 62,000 70,000 78,000

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PSL’s Path to Profitability

Contribution Margin and EBITDA as % of Gross Sales (USD Mn)

75
70 65.0 45%
65
60
55 35%
50 46.0
45
40 25%
23%
35 20%
30 17%
14% 15% 14% 15%
25 12% 30.0 12%
20 10%
7% 10%
15 4% 5%
10 13.9
3.6 4.3
5 1.6
0 -5%
-5%
-5 Jan-Mar'19 Jan-Mar'20 Jan-Mar'21 Jan-Mar'22 Jan-Mar'23P Jan-Mar'24P Jan-Mar'25P
-10 -15%
-15 -17%
-20
-25 -25%

EBITDA QUARTERLY CONTRIBUTION

MARGIN GROSS SALES MARGIN

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PSL’s Management Team

ABHISHEK AGARWAL ABHINAV AGARWAL NIVESH PANDEY AMIT CHAHALIA

Chief Executive Officer Chief Business Officer Chief Strategy Officer Chief Design Officer
Founder and Director Director

AMANDEEP SHARMA NIKET AGARWAL ATIYA HAKIM NUPUR MEHTA PURI

Head – Customer Experience Chief Technology Officer Head Designer – Inhouse Labels Chief Communication Officer

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 Supply side Growth Strategies

DESCRIPTION GLOBAL EXAMPLES PSL’S APPROACH

1 BRAND ACQUISITIONS/INVESTMENTS LVMH has been acquiring stakes § Have acquired two legacy designer brands,
in luxury fashion companies Wendell Rodricks and Hemant Trevedi Label

In-Progress
Acquisitions and Investments in brands
allows higher control on the supply side
§ Invested in House of Masaba, one of the
with benefits like exclusivity and higher Myntra is strengthening private highest selling brands on the platform and a
margin in the value chain label offering inorganically FDCI fellow designer label

Achieved
Gucci launches exclusive capsule § Launched exclusive collections with multiple
collection for YNAP designers for Pernia’s Pop-Up Runway shows
2 STRATEGIC PARTNERSHIP
Partnership with brands helped luxury
§ Introduction of home furnishings
retailers to ensure wider availability

In plans
Farfetch provides Harrods logistic and collections with notable designers
and fuel higher repeat purchase rate
tech support for online distribution § Collaboration with designer to launch
exclusive lines across categories

Achieved
YNAP operates online stores for 33 luxury § Management of E-Commerce for 30+
3 MULTI-SERVICE PROVIDER brands, which generated ~EUR250 brands like Tarun Tahiliani, Rohit Bal etc.
Luxury online players leverage
experience to provide E-commerce

In plans
management and global fulfilment ~17% revenue from fulfilment services § Expand E-Commerce Portal Management
(shipping and clearance services) services to ~50 luxury brands in 12 months

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 Demand side Growth Strategies

DESCRIPTION GLOBAL EXAMPLES PSL’S APPROACH

YNAP offers discounted luxury products

1 CUSTOMER LTV § Multiple off-season sales events are conducted in
through off-season platforms (38% of revenue)

In-Progress
collaboration with designers
Premium fashion retailers drive
§ Online to Offline experience delivers 2-3x AOV
customer LTV and stickiness by
providing personalization, global § In-store touchscreens offers wider variety
Offers 3-day shipping globally, same day
delivery and omni-channel experience § Personalization and Store pickups improve upsell
in 18 cities, 90 minutes in 12 cities

§ ~70% of online sales are from outside India

Achieved
LVMH expanded outside EU over the last
§ USA and UK contribute to 50% of online sales
2 GEOGRAPHIC EXPANSINON decades – focusing in USA and Asia
§ London store opened in Nov 2019
Luxury omni-channel retailers forayed
into international markets to gain
scale and mitigate market risk § Other international locations like NY, LA, SF,

In plans
Revenue from EMEA grew with focus in
Vancouver, Toronto, Dubai, HK, Singapore
ME (35% to 50% over 2015-18)
planned in 2023-24

Achieved
3 CATEGORY EXPANSION For LVMH, share of watches & jewelery § Introduced Home Décor and more Lifestyle
grew from 4% to 9% over 2009-18 categories in 2019
To improve customer’s share of
wallet on their platforms, luxury
fashion retailers have diversified YNAP has been expanding the luxury

In plans
§ Expansion into more Accessories and Lifestyle
into adjacent lifestyle categories portfolio by adding lifestyle products Categories in 2022-23

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Category-wise Gross Sales bridge from 2020 to 2025

FY20 Gross Sales Split (USD Mn) FY25P Gross Sales Split (USD Mn)

10
0.8 0.05 10 200
40 200
1.9
9
180
8 30
160
3.2
7 140 20
6 120 40
5 100
4
4 80 50
3 60

2 40
20
1 20
0.05
0 0

Apparel Apparel Apparel Costume & Silver Bags/Footwear E-Commerce

Category (Average Selling Price)
(USD 40-150) (USD 150-500) (USD >500) Jewellery Home & Lifestyle Services

FY25P Addressable Market (USD Mn) 8,402 2,140 1,398 3,952 2,816 -

PSL’s Market Share (%) 0.2% 2.5% 2.9% 0.5% 1.1% -

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PSL’s Investors

Akash Bhanshali Navroz Udwadia Madhuri Dixit Neelesh Bhatnagar

Director, Enam Holdings Co-Founder, Alpha Wave Indian Actor Founder, NB Ventures

Binny Bansal Mukul Agrawal Girish Kulkarni Rahul Kayan

Co-Founder, Flipkart Param Capital Suyash Advisors Director, SMIFS

Utpal Sheth Sid Yog Sumit Jalan Rahul Garg

CEO, RARE Enterprises Founder, Xander Group MD, Credit Suisse Securities Partner, Premji Invest

Harminder Sahni Mukesh Sawlani Vineet Gautam Rishi Vasudev

Founder, Wazir Advisors Chairman, Anita Dongre CEO, Bestseller India Founder, GOAT Brands

Vikash Agarwal Raj Soin Salil Musale Surendra Goyal

Rupa & Company Founder, Soin International LLC Astarc Ventures CFO, Birla Carbon

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 India’s largest Premium
Luxury Fashion House

Global Outreach

1000+ Designer Brands

USD 200 Mn+ Omni-channel Sales

200k+ Customers
Target 2025

USD 100 Mn+ Online sales

and 40+ Experience Stores

50+ E-Commerce Websites

of designer brands

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