Shopmatic sees strong growth, expects to turn cash positive in 2021
E-commerce solutions business Shopmatic has exceeded its revenue targets by 40% and reported a revenue total of $7 million (Rs 46.6 crore) from April to December, 2020. The business expects to turn cash positive in 2021.
Shopmatic turned earnings before interest, tax, depreciation, and amortisation positive a year ahead of its schedule, the business announced in a press release. Shopmatic reported strong demand in India, Singapore, Malaysia, and Hong Kong and attributed some of this demand to the increased focus on online shopping caused by the ongoing coronavirus pandemic.
During the July to September financial quarter, Shopmatic reported 80% growth in transactions and gross merchandise value compared to the previous quarter. The business attributes much of this growth to the large numbers of small and medium enterprises, which adopted its e-commerce solutions during this time period.
Shopmatic launched a number of new features over the course of the year, including online solutions designed for kirana stores in May, which it reported particularly strong uptake in India and Singapore. In December, the business also launched a range of four new e-commerce solutions.
“We are very happy that we were able to close 2020 on a hugely positive note and are now able to step into 2021 with even more aggressive plans to digitise local businesses and entrepreneurs in Singapore, India, Malaysia, and Hong Kong,” said Shopmatic’s co-founder and CEO, Anurag Avula, in a press release.
“We continue to make significant investments behind key resources to be able to drive our organisation to the next level and expand footprint into new markets in South East Asia,” said Avula.
“At Shopmatic, our focus is to build a sustainable and profitable business and we are delighted that we’ve been able to reach this significant milestone a year ahead of plan.”
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