Fashion e-commerce marketplace Voonik’s net profit jumped 264 per cent in FY20 to Rs 28.90 crore, according to regulatory filing sourced from business intelligence platform Tofler. Revenues increased 109 per cent from Rs 21.45 crore to Rs 44.76 crore during the said period. The company was able to cross the bottom-line milestone due to a continuous decline in expenses.
Since FY17, Voonik has cut expenses by 93 per cent and 59 per cent from FY19 to Rs 15.99 crore in FY20. Expenses declined from Rs 247 crore in FY17 to Rs 113 crore in FY18 and further by a significant margin to Rs 39 crore in FY19. The majority chunk of expenses included Rs 5 crore in employee benefit expenses, Rs 3.82 crore for purchases of stock in trade, Rs 3.16 crore in legal professional charges, Rs 1.1 crore in transportation distribution expenses, and Rs 59.3 lakh ad promotional expenses.
As per an analysis by the Redseer Consulting, India’s online fashion segment is expected to grow from $4.8 billion in GMV in FY19 to $19 billion in FY24 amid a majority share of 54 per cent cornered by the apparel segment followed by 26 per cent coming from the footwear vertical and 20 per cent from accessories. The private label brands have been able to make fashion more affordable for customers and it has led to more traction on platforms like Myntra and others.