Purplle vs Nykaa: Which One Is Better & Ruling The Cosmetics Space?

The battle of Purplle vs Nykaa has taken the netizens by storm. Reason? The ongoing battle of e-commerce startups related to wellness and beauty. We all are aware of the fact that the Indian e-commerce market has boomed in the last decade. After all, what can be better than shopping for products and getting them delivered to the comfort zone of your home?

Numerous e-commerce startups have emerged in the segment of beauty, wellness, and fashion products. Two such prominent players in a fierce battle are Purplle vs Nykaa! Here, not only do you get a wide range of beauty products but also numerous discounts and offers. 

However, it leads to an unavoidable question i.e. “Purplle vs Nykaa: Which one is ruling the cosmetics space?” So, in this article, we will throw light on the same by comparing various aspects of Purplle and Nykaa. 

Let’s begin!

(A) Purplle vs Nykaa: A Brief Overview

Purplle and Nykaa are prominent players in the Indian beauty e-commerce market. You see, both have partnerships with numerous trusted cosmetics brands like L’Oreal, Mac, Lakme, Plum, etc. Not just that, they have tie-ups with Ayurveda brands too like Kama Ayurveda and Biotique.

Before diving deeper into the details, let’s have a brief overview of Purplle vs Nykaa-

From the provided table, we can gather several key insights about the two companies, Purplle and Nykaa. 

Purplle is a privately held company whereas Nykaa is a publicly listed company and is traded in the Indian share market. Both companies operate in the e-commerce and cosmetics industry in India. They both serve the B2C (Business-to-Consumer) market, meaning they primarily sell their products directly to consumers. 

However, Nykaa has expanded into the D2C (Direct-to-Consumer) space as well, which means they may also sell products manufactured or sourced directly by them.

In terms of their founding, Purplle was established in 2011 by Manish Taneja and Rahul Dash, while Nykaa was founded in 2012 by Falguni Nayar, who is the CEO of the company. Both companies are headquartered in Mumbai, Maharashtra, India. 

Purplle is under the parent company Manash Lifestyle Private Ltd., while Nykaa is part of FSN E-Commerce Ventures Ltd. They both primarily serve the Indian market. 

Overall, this table provides a snapshot of the key details about Purplle and Nykaa, showcasing their similarities in industry and location, as well as their differences in founding, expansion, and corporate ownership.

(B) Businesswise Comparison of Purplle vs Nykaa

Now, let’s see who is doing better in terms of business in the Indian e-commerce market. Here, we will compare the market valuation or market capitalization, revenue, expenses, and overall profit/loss.

Go through the following table to get a thorough business analysis of Purplle vs Nykaa-

The provided table offers valuable insights into the financial performance of the prominent companies, Purplle and Nykaa. 

As you have read above, Purplle is a privately held company whereas Nykaa is a publicly listed company. Hence, in terms of market capitalization or market valuation, Nykaa surpasses Purplle. Yes! It is true… Purplle is valued at $1.1 billion whereas Nykaa’s market cap is $4.79 billion.

When it comes to revenue, Nykaa also outperforms Purplle by a substantial margin. In the fiscal year 2022 (FY22), Nykaa reported revenues of Rs.3,774 crore, whereas Purplle’s revenue for the same period was Rs.219.88 crore. 

Nykaa’s revenue for the fiscal year 2023 (FY23) reached Rs.5,144 crore.

Expenses reveal a similar trend, where Nykaa’s expenses for FY22 were Rs.3,753 crore, while Purplle’s expenses were Rs.431.20 crore. For FY23, Nykaa’s expenses touched Rs.5,135 crore.

In terms of profitability, Nykaa reported a profit of Rs.41.3 crore in FY22, a significant difference from Purplle, which incurred a loss of Rs.203.63 crore in the same period. In FY23 too, Nykaa gained a profit of Rs.21 crore.

In summary, the table highlights Nykaa’s financial superiority over Purplle in terms of market valuation, revenue, and profitability. Nykaa’s higher market valuation, substantial revenue, and profitability demonstrate its strong financial performance and market presence compared to Purplle.

(C) Purplle vs Nykaa: Comparison in Terms of Finances

Here, we will compare the finances of Purplle vs Nykaa based on two factors i.e. revenue and expenses.

(C.1) Revenue Comparison of Purplle vs Nykaa

In the table, you can see a breakdown of revenue sources for Purplle and Nykaa in the fiscal year 2022 (FY22). Purplle reported a total revenue of Rs.219.88 crore, whereas Nykaa’s total revenue was significantly higher at Rs.3,774 crore for the same period.

For Purplle, the largest revenue source in FY22 was the sale of services, which amounted to Rs.136.21 crore, followed by the sale of goods at Rs.35.61 crore. Additionally, they earned Rs.46.33 crore in royalty income and Rs.1.73 crore from membership and subscription services. The specific details about other revenue sources were not disclosed in the table.

In contrast, Nykaa had a substantial income from the sale of goods, generating Rs. 3,218 crore, making it their primary source of revenue. They also earned Rs.533 crore from the sale of services and Rs.22 crore from other sources, which were not further specified in the table. 

Interestingly, Nykaa did not disclose any royalty income or revenue from membership and subscription services for FY22.

This table reveals that Nykaa’s main revenue driver is the sale of goods, highlighting its significant market presence in the beauty and cosmetics e-commerce sector in India. 

Purplle, while having a smaller revenue in comparison, relies more on the sale of services, royalty income, and membership subscriptions as part of its revenue mix. 

These insights provide a better understanding of how these two companies generate their income, with Nykaa’s revenue heavily skewed towards product sales.

(C.2) Expenses Comparison of Purplle vs Nykaa

Note: We have already explained the “Nykaa business model.” Go through the article for detailed information.

(C.3) Result: Profit or Loss?

Purplle drowned in the loss of Rs.203.63 crore in FY22 whereas Nykaa earned a profit of Rs.41.3 crore in the same fiscal year. It represents the financial dominance of Nykaa in the Indian beauty e-commerce segment.

As per the critics, Purplle spent nearly 2X to earn a single unit of its operating revenue. However, Nykaa was no better despite being profitable. Why? You may wonder. Because, in the financial year 23, its profits dipped almost 49%. Yes, it earned a profit of Rs.21 crore in FY23 as compared to Rs.41.3 crore in FY22.

Despite that, Nykaa is much stronger than Purplle in terms of finances.

(D) Purplle vs Nykaa: Features Comparison

Here, comes the most anticipated part of the write-up i.e. the features! The following table describes the distinguishing features of Purplle vs Nykaa-

These distinguishing features can help you make an informed choice between Purplle and Nykaa based on your preferences and requirements.

Note: Have you ever got confused between Amazon vs Flipkart? Like from where to buy the products? If yes, then go through the article “Amazon vs Flipkart: Which One is ruling the Indian e-commerce market?”

(E) Final Words: Who is ruling the cosmetics space- Purplle vs Nykaa?

In the dynamic world of cosmetics and beauty e-commerce, the battle of Purplle vs Nykaa is a compelling one. 

Nykaa, with its higher market capitalization, substantial revenue, and profitability, appears to be the dominant player. It excels in selling products and boasts a vast range of offerings, particularly premium brands. Purplle, on the other hand, positions itself differently, focusing on service, royalty income, and membership subscriptions. 

While Purplle has a more diversified income stream, Nykaa’s market presence and financial performance seem to give it the upper hand in ruling the cosmetics space. 

Thus, if you see which one is ruling the cosmetics space in terms of business, Nykaa is the winner. However, each company offers a unique value proposition, catering to different segments of the market!