By 31 March 2017, Koovs saw a sales spike of 87%. This earned the online fashion etailer £18.6 million and pushed it closer to profitability. It appears that the etailer is maintaining its sales momentum with a 65% jump in annual sales. But the impact of demonetisation in Indian drastically widened the losses of the London listed ecommerce company.
Sales & losses
In local currency, Koovs’ sales are at around Rs. 1.6 billion ($11,323 thousand). However, its losses increased to Rs. 294 million ($4,373 thousand) against Rs.235 million ($3,108 thousand).
The chief executive at Koovs, Mary Turner said, “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 ecommerce firm’s losses were a result of deep discounting last year. And, since cash on delivery (COD) is the most demanded mode of payment in India, demonetisation affected online customer purchase rates.
Since its IPO, Koovs has been struggling to stay competitive in the Indian ecommerce market as its shares have lost 80% of their value.
The online fashion retailer raked in £10.9 million as funding late last year but will the demand for steep discounts and get in its way of breaking even by 2019?
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