Voonik reaches profitability following 109% revenue increase
Fashion-focused e-commerce business Voonik has turned profitable following a 109% revenue increase and a decrease in expenses in the 2020 financial year.
Voonik had reported Rs 17.63 crore ($2.65 million) in losses in the 2019 financial year and managed to end the 2020 financial year with a net profit of Rs 28.9 crore, the Financial Express reported. Over the course of the 2020 financial year, the company grew its online business and continued to focus on reducing expenses, which it had been doing since 2017.
“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,” said Voonik, in a financial report accessed by business intelligence firm Tofler, the Financial Express reported.
“The directors are optimistic about the company’s business and hopeful of better performance with increased revenue in [the] next year.”
In the 2020 financial year, Voonik merged with Bangladesh-based business-to-business social commerce platform, ShopUp. As part of the deal, Voonik co-founders, Navaneetha Krishnan and Sujayath Ali, joined ShopUp as co-founders, and shared their aim to be part of creating Bangladesh’s first unicorn (a privately held start-up company with a valuation of $1 billion and over).
Voonik retails a wide selection of womenswear, menswear, children’s wear, and accessories, among other product categories, across India. The business aims to continue to grow, capitalising on India’s growing fashion e-commerce market, which is continuing reach more rural locations.
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