With positive revenue increase, Voonik to scout for external funding

Bengaluru-based fashion marketplace Voonik says it will soon start looking for external funding. This Sequoia Capital-backed online brand aims to become EBITDA profitable by end of this year. Voonik clocked in Rs 116 crore revenue, which is a five-fold increase from last year.

As per Registrar of Companies (RoC) filings of fiscal year 2016, Voonik clocked in losses of over Rs 84 crore with a revenue of Rs 16 crore. The e-commerce company along with Sequoia counts RB Investments, Japanese e-commerce operator Beenos, Beenext, Tancom Investments and Times Internet, the digital product and investment arm of the Times Group as its investors.

The company says kids segment will contribute 15-20 per cent to its business. Both the frequency as well as number of items per orders is higher in kids’ wear, the company expects to penetrate a highly profitable market segment. Sujayath Co-founder and CEO of Voonik says over the last two months of festive season, Voonkik clocked 2.5x sales everyday for the four sales that were hosted even while bigger players were running their big sales. During October, throughout the month they had a consistent surge despite others’ bigger discounts. Nearly 75-80 per cent of sales were from Tier II, III cities and most traffic came in from mobile app and web while desktop traffic contributed just 5 per cent. Sujapyath further stated employee’s salary will be now be disbursed on operational costs and not be reliable on investor-cash which may bring in doubts and includes deference of salary if needed.