Voonik to raise funding after becoming EBITDA profitable by year end
Additionally, the Bengaluru-based company has also claimed that it already achieved a GMV of $90 million for FY’17 and has clocked revenue of Rs 116 crore which is a five-fold increase from its last year.
As of the fiscal year 2016, Voonik clocked losses of over Rs 84 crore with a revenue of Rs 16 crore, according to the Registrar of Companies (RoC) filings.
The e-commerce company along with Sequoia counts RB Investments, Japanese e-commerce operator Beenos, Beenext, Tancom Investments and Times Internet, the digital product and investment arm of the Times Group, the publisher of this newspaper as its investors.
Talking to ET, Sujayath Ali, co-founder and CEO of Voonik added, “Over the last two months of the festive season, we clocked 2.5x sales everyday for the four sales that we hosted even while bigger players were running their big sales. During October, throughout the month we had a consistent surge despite others’ bigger discounts,” adding, “75–80% of our sales were from tier II and tier III cities and most of our traffic came in from mobile app and web while desktop traffic contributed just 5%.”
The 200-member company has now also launched a kid’s section which will contribute 15–20% to the business. With kids wear, the company expects to penetrate a highly profitable market segment where both the frequency as well as the number of items per orders is higher.
Further dismissing the recent layoff reports, Sujayath said that the employees in an all-hands meeting which was held earlier this month, were told that salaries will now be disbursed on operational costs and will not be dependable on investor-cash which might bring in uncertainties and includes deference of salary if required.”The employees were then told that if they find it difficult, they can choose to leave but we will always pay back the deferred salary.”