Voonik: revenue rose 600 percent in FY17 but losses rose too

By

Isabelle Crossley

Published
Mar 23, 2018

According to Tofler, Voonik’s revenue increased by 600 percent in the financial year (FY) 2017 but losses also increased by 50 percent from the previous financial year.

According to the online fashion retailer’s financials as presented on the company research platform Tofler, Voonik saw a massive revenue increase over the course of FY17. However, losses also increased significantly.

In FY17, Voonik’s revenue total reached 117 crore rupees (approximately 17.6 million US dollars) which was up from 17.8 crore rupees (approximately 2.7 million US dollars) in the previous financial year, FY16. Losses increased to 130 crore rupees (approximately 19.5 million US dollars) from 84 crore rupees (approximately 12.6 million US dollars) the year before. Therefore, despite the business’ huge revenue increase, losses are still far higher than the revenue total but the gap between the two has been reduced compared to the year before which suggests that Voonik is on track to achieving break even.

The largest cost born by Voonik over FY17 was marketing as the company changed from an affiliate business model to a marketplace which involved a large investment. The increase in revenue, however, shows that it was the right decision.