Voonik, a Bangalore-based online fashion marketplace that operates in women’s fashion market, aims to become EBITDA profitable by end of this year. Once it becomes EBITDA profitable, it will start the process of raising additional funding through a new round.
The company claimed that it has already achieved a GMV of $90 million for FY’17 and has clocked revenue of ₹116 crore — a five-fold increase from its last year. For the fiscal year 2016, Voonik reported losses of over ₹84 crore with a revenue of around ₹16 crore, according to the documents filed with the RoC.
Explaining more about the company’s business, Sujayath Ali, co-founder and CEO of Voonik said to ET:
Over the last two months of the festive season, we clocked 2.5x sales everyday for the four sales that we hosted even while bigger players were running their big sales. During October, throughout the month we had a consistent surge despite others’ bigger discounts. 75-80% of our sales were from tier II and tier III cities and most of our traffic came in from mobile app and web while desktop traffic contributed just 5%.
Voonik currently employs over 200-members and has also recently launched a kid’s section which the company hopes will contribute 15-20% to the business. With kids wear, the company expects to penetrate a highly profitable market segment where both the frequency as well as the number of items per orders is higher.
The startup is backed by Sequoia Capital, along with RB Investments, Japanese e-commerce operator Beenos, Beenext, Tancom Investments and Times Internet.
It was founded in 2013 by Navaneetha Krishnan and Sujayath Ali. It provides a personal shopping platform that helps people dress well within their budget, by offering style advice and hand-selected recommendations, based on the customer’s style preferences and body type.