Purple Style Labs Limited

Website and mobile application dependence

We depend on our website and mobile application for online sales. Any disruption, including due to technical issues, cyber-attacks or changes in consumer behavior, could adversely affect our business, financial condition, cash flows, results of operations and prospects.

technology · high (p.20)

Indian wedding and occasion wear concentration

Our business is highly concentrated on Indian wedding and occasion wear and vulnerable to changes in consumer preferences which could have an adverse effect on our business, financial condition, cash flows, results of operations and prospects.

demand concentration · high (p.20)

Expansion execution risk

Any inability on our part to enhance our presence, increase our customer base and expand our footprint may adversely impact our business, financial condition, cash flows, results of operations and prospects.

growth execution · high (p.20)

Designer Brand concentration and performance

We depend on our top Designer Brands for a significant portion of Total PPUS GMV. If we fail to retain existing Designer Brands, add new brands cost-effectively, or if Designer Brands fail to supply quality products, our business, financial condition, cash flows, results of operations and prospects may be adversely affected.

supplier and brand dependency · high (p.20)

International-market exposure

We derive a significant portion of Total PPUS GMV from outside India, exposing us to risks inherent to foreign jurisdictions. Adverse developments in international markets, including foreign currency exchange rate fluctuations, could adversely affect our business, financial condition, cash flows and results.

geographic and foreign exchange · high (p.20, 21)

Lease and rental exposure

The premises of all our Experience Centers are either licensed or leased. If we fail to renew these leases on competitive terms or at all or if we are unable to manage our lease rental costs, our business, financial condition, cash flows, results of operations and prospects would be materially and adversely affected.

fixed-cost and property · high (p.21)

Designer quality-control risk

Our Designer Brands manufacture the products that we sell and any failure in their quality control processes may damage our reputation and adversely affect our business, financial condition, cash flows, results of operations and prospects. We may face reputational harm or proceedings if product quality does not meet customer expectations.

product quality and reputation · high (p.21)

Issue proceeds based on management estimates

Our funding requirements and deployment of the Net Proceeds of the Issue are based on management estimates and have not been independently appraised. The Company states these estimates are subject to change and the funding requirements have not been appraised by any bank or financial institution.

issue proceeds · high (p.111)

No formal market for the Equity Shares

This being the first public issue of Equity Shares, there has been no formal market for the Equity Shares. No assurance can be given regarding active or sustained trading in the Equity Shares or regarding the price at which the Equity Shares will be traded after listing.

issue and listing · high (p.1, 3)