Vector E-Commerce revenue plummets 90% to Rs 81 crore
today Dec 28, 2018
Myntra seller Vector E-Commerce saw its revenue plummet drastically by over 90 percent to Rs 81 crore (approx $11.6 million) for the financial year 2018 as compared to Rs 1,216 crore it had posted a year earlier.
The company also suffered losses for the fiscal year of Rs 52 lakh as compared to a profit of Rs 9 crore it had posted in the last financial year.
Vector E-Commerce’s financial statements show the company had a negative net worth of Rs 6 crore and a working capital deficit of Rs 16 crore as of March 31, 2018.
“These conditions indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern,” the Economic Times reported citing the auditor’s filings.
Vector E-commerce was the prime merchant on the Flipkart owned fashion platform for many years. However, Myntra decided to give more weight to Tech Connect Retail, which resulted in a decline in sales revenue for Vector.
Myntra has tied up with Tech Connect Retail in 2016 in order to comply with Foreign Direct Investment (FDI) regulations of the government which prohibits any single merchant from having more than 25% of overall sales on any e-commerce platform with overseas investment.
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