India’s on the net style segment is anticipated to develop from 4.8 billion dollars in GMV in FY19 to 19 billion dollars in FY24.
Fashion e-commerce marketplace Voonik, which merged its B2B small business and technologies platform with Bangladesh’s social commerce platform ShopUp and spun off its B2C single-brand retail vertical with Bengaluru-primarily based schooling supplies startup Schoolay earlier this year, has turned lucrative. The enterprise reported climbing out of red from Rs 17.63 crore in losses through FY19 to Rs 28.90 crore in net profit for FY20 – a 264 per cent jump, according to regulatory filing sourced from small business intelligence platform Tofler. The revenues have been up 109 per cent from Rs 21.45 crore to Rs 44.76 crore through the stated period. The enterprise crossed the bottom-line milestone on the back continuous decline in costs.
Since FY17, Voonik was capable to reduce its costs by 93 per cent and 59 per cent from FY19 to Rs 15.99 crore in FY20. Its costs declined from Rs 247 crore in FY17 to Rs 113 crore in FY18 and additional by a important margin to Rs 39 crore in FY19. The majority chunk of costs incorporated Rs 5 crore in employee advantage costs, Rs 3.82 crore for purchases of stock in trade, Rs 3.16 crore in legal skilled charges, Rs 1.1 crore in transportation distribution costs, and Rs 59.3 lakh ad promotional costs.
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“After substantial investment in the planned business project of the company, the Seventh financial year of operations closed with an operational profit of Rs 28,90,92,892/-. The Directors are optimistic about the company’s business and hopeful of better performance with increased revenue in next year,” the enterprise stated in its filing. Voonik has so far raised $34.5 million funding across 5 rounds with the most up-to-date Series C round of $6 million in February 2017, according to Crunchbase.
India’s on the net style segment is anticipated to develop from $4.8 billion in GMV in FY19 to $19 billion in FY24 amid a majority share of 54 per cent cornered by the apparel segment followed by 26 per cent coming from the footwear vertical and 20 per cent from accessories, according to a Redseer evaluation. The private label brands have been capable to make style more cost-effective for clients and it has led to more traction on platforms like Myntra and other individuals. Currently, Walmart’s Myntra dominates the on the net style segment that has players like Amazon, LimeRoad, FabAlley, and other individuals.