London-listed e-commerce company Koovs bore the brunt of India’s demonitisation policy, which resulted in further dent into its losses for the year ended March 31, 2017. While its sales surged 65 percent in local currency to 1.6 billion Indian rupees (11,323 thousand dollars), losses widened to 294 million Indian rupees (4,375 thousand dollars) against 235 million Indian rupees (3,108 thousand dollars).
Financial Times quoted Mary Turner, Koovs Chief Executive, in its report saying: We are pleased to have delivered strong sales growth, significantly outperforming India’s e-commerce market by over five times during the challenging period of demonetisation, which affected the whole economy in India.”
The company said that impact of demonitisation announced in November last year led to increased discounting, which in turn caused a gross margin loss. Cash on delivery is the most sought after service in India, so the company said demonitisation affected the online purchases of customers. According to Financial Times, Koovs has been struggling to remain afloat in the highly competitive Indian ecommerce market and its shares have lost 80 percent of their value since its IPO.