Becoming the group’s first online venture to turn profitable, Reliance Retail’s online fashion business, Ajio is expected to achieve an EBITDA of Rs 6-8 crore in December.
The company’s performance can be attributed to factors including a premiumisation trend in the market that helped it improve its average billing value, reduction in logistic costs by shipping most orders from nearby stores, and reduction in return rates to 28 per cent from the earlier 38 per cent.
Ajio also reduced marketing costs by setting up five different storefronts for each consumer class. Additionally, it set up 4,000 stock points for last-mile fulfillment, including Reliance Retail's nearest store for delivery. .
Ajio’s gross merchandise sales during the year surged to $2 billion with 51 per cent of the business coming from the Reliance Retail portfolio and the balance 49 per cent from its own and exclusive brands.
