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Voonik hopes for a turnaround this year

By Meenakshi Kumar


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Voonik is looking to turn profitable by 2017. The fashion e-commerce portal, which offers a personalised selection of apparel for customers, is cutting costs, improving efficiency and engaging customers to return to shop on the platform. It has focused on improving user experience and delivery to customers. At the same time, it also has expanded the number of sellers on its platform to offer more choices to young customers who look at everyday fashion. The aim is to grow from 65 to 70 million shoppers currently to 100 million in the next 12 months.

Voonik is backed by Sequoia Capital. Its burn has come down by half due to a combination of marketing efficiency, break even on each customer as well as a reduction in fixed cost. Reduction in tech cost by 50 per cent has helped reduce the burn rate.

The company also reduced its customer acquisition cost by 50 per cent. It spends Rs 200 on each new customer acquired. While it earlier took 14 months to earn this money back from customers through commissions it now takes seven months. The average delivery time has come down from seven days to five days. This year Voonik will focus a lot on stylist help to customers.