Published
Jan 10, 2018
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Voonik turns profitable for first time

Published
Jan 10, 2018

The Bengaluru-based online fashion retailer Voonik has reported that it turned a profit last December (2017) and this has encouraged them to continue to cut costs and pursue profitability.

Voonik has reported that it turned a profit last December (2017) - Voonik- Facebook


Voonik had a profit for their earnings before interest, taxation, depreciation, and amortisation (EBITDA) in December 2017 which signified a 4.5 fold revenue increase for the company.

Voonik’s founder and CEO, Sujayath Ali, said on his Twitter that the company would no longer “burn” cash as it had previously.

Although Voonik have not yet filed their financial year 2017 results with the Registrar of Companies, they themselves have stated that they earned a revenue of 117 crore rupees (approximately 17.5 million US dollars). They also stated that this was a 16 crore rupee (approximately 2.4 million dollar) comparable increase.

The two main costs for Voonik have consistently been shipping and marketing and it is in these sectors that Voonik is seeking to further cut costs to increase profitability. Logistics has long been the main cash burn for e-commerce fashion retailers and India’s giants are all trying to find ways of cutting these high costs. Flipkart is pursuing its own delivery service, eKart, and so Voonik will no doubt come up with its own logistics solution.

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