Myntra, which got acquired by Flipkart in May, 2014 has reported revenue figures of INR 773 crores against a loss of INR 740 crores for FY 14-15. Myntra is one of the leading fashion e-commerce portal in India and competes with the likes of Jabong, Fashion and You among others.

Financial Performance

Myntra is owned and operated by Myntra Designs Private Limited. The company reported a revenue growth of 78%, its revenue stood at INR 773 crores in FY 14-15 vis-à-vis INR 433 crores in FY 13-14.

The losses surged more than four folds from INR 173 crores in FY 13-14 to INR 740 crores in FY 14-15. In comparison, Jabong had reported a revenue of INR 1083 crores with a loss of INR 44 crores in the same period.

Myntra operates on an inventory-led model, and recognizes its revenue from the sale of goods through the website and the mobile app. It also realizes revenue from the technology solution services from operating the internet portal in the form of brand name license fees, technology license fees, domain name fees and service fees. Its revenue from operations was 96% of the total revenue.

The major expenses for the company as a percentage of the total expenses were purchase of stock-in-trade at 72%, Employee expense at 14% and advertising promotional expenses at 11%.

Interestingly, the employee expenses went up by 401% in the period. Following chart gives a break-up of the major expenses:

Funding

The company has raised a total funding of INR 1831 crores. However, the major funding came post acquisition when the company saw major investments from Flipkart of INR 1160 crores during June 2014 to June 2015.

About Myntra

Myntra was founded by Mukesh Bansal, Ashutosh Lawania and Vineet Saxena in 2007. It is an online e-commerce platform for fashion and lifestyle products including clothes, apparels and footwear and operates through an app-only model. Myntra, which specializes in fashion e-commerce, competes directly with Jabong, Yepme, Fashion and You and Limeroad in its category and indirectly with other E-commerce giants like Snapdeal and Amazon.

Myntra initially operated on a B2B model for on-demand personalization of gift items. In 2011 they shifted their focus on fashion and lifestyle products. In 2014, Myntra got acquired by Flipkart to keep players like Amazon and Snapdeal at bay. Founder and CEO, Mukesh Bansal, now heads Flipkart’s commerce platform and the ads business.

Myntra went app-only in May 2015but it seems that they have seen a decline in sales due to that. They recently announced that they clocked an annualized Gross Merchandise Value (GMV) of USD 800 million in January 2016 and are focusing on attaining positive gross profit and touching USD 1 Billion gross profit this year.

For Annual Reports, Balance Sheets, Profit & Loss, Company Research Reports, directors and other financial information on ALL Indian Companies, head over to www.tofler.in – Business Research Platform.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, co-founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Tofler makes no claim of ownership or affiliation with any trademark / logo (REGISTERED OR UNREGISTERED) used in this article. Trademarks or logos, if any, published on this page belong to their respective owners.

Jabong, the online fashion e-tailer, earned a revenue of INR 1083 crores in FY 14-15, double of that in previous year. The loss figures stood at 4% of the total revenue at INR 44 crores.

Financial Performance

The company has registered triple digit growth since inception. In the financial year ending March this year, Jabong reported a revenue of INR 1083 crores, which is a growth of 105% over the previous year figure of INR 527 crores. The company is yet to break even and made a loss of INR 44 crores in the period as compared to INR 17 crores in previous fiscal.

About Jabong

Xerion Retail Private Limited operates the e-retail platform jabong.com for trading of lifestyle products like apparels, footwear, jewelry and accessories. Co-founded by Arun Chandra Mohan, Lakshmi Potluri and Praveen Sinha in 2011, Jabong has been among the leading fashion and lifestyle platforms in the country. It offers more than 2000 brands including Adidas, American Tourister, Gucci, Lee Cooper, Reebok, Van Heusen, UCB, etc. The company operates on an inventory-led model.

Jabong is a Global Fashion Group company, which operates fashion ecommerce companies across 27 countries. Jabong also offers Indian ethnic apparels across the globe through its international arm jabongworld.com.

Revenue Model

The company operates on an inventory-led model and around 98% of the revenue comes from the sale of the goods, the goods being the finished products that it keeps as inventory. In effect, the major expense for the company is the ‘Purchase of goods’ which stood at INR 837 crores. The other major expense was the logistics expense which stood at INR 161 crores. It does not charge any shipping fee from the customers. The discounting charges were INR 6.3 crores. The following chart gives a break-up of the expenses.

While Flipkart and Snapdeal have been offering lifestyle products to their customers since their early days, Amazon also started offering lifestyle products this year. Myntra, its largest competitor, was acquired by Flipkart in May 2014. Its other competitors include Yepme, Yebhi, Koovs, Fashion and You among others.

Jabong had been at par in sales with Myntra till the time Myntra got acquired, but has been losing the market share ever since. There were talks of Jabong’s acquisition by Paytm this September following the exit of founding team. It was reported at the time that Jabong was being valued at somewhere between $500 million and $800 million. It appears that the acquisition did not go through, instead, there were plans to overhaul the senior management.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Astronomical growth in the e-commerce sector in India in the past 5 years or so, has led to the birth and steep rise of ‘e-commerce focused logistics’ segment. Companies in this segment are attracting tremendous investor attention. The e-commerce industry in India is poised to grow further and penetrate deeper into Tier-II and Tier-III cities, which will definitely pave a path of high growth for the ‘e-commerce focused logistics’ segment.

Ecom Express is one of the key players in this segment. Ecom Express Private Limited, which owns and operates Ecom Express, is a logistics solution provider which caters solely to e-commerce logistics. It was co-founded by T. A. Krishnan, Sanjeev Saxena, K. Satyanarayana and Manju Dhawan in 2012. The company specializes in pre-paid, cash on delivery, cash before delivery, dropship and reverse logistics services. It also provides value added services like same day delivery, special delivery location, Sunday pickup/delivery service to its customers. The major e-sellers using its platform include Amazon, Flipkart, Snapdeal and Myntra.

Ecom Express Financials

In just a span of three years, Ecom Express’ revenue figures have grown 200 times from INR 73 lacs in FY 12-13 to INR 151 crores in FY 14-15 (refer to the chart below). However, it has reported a loss of INR 49 crores in FY 14-15.

Company’s expenses seem to be split across two major heads – Employee expenses and Cost of freight. While employee expenses almost quadrupled from the previous fiscal, cost of freight became five times.

Ecom’s major competitors include Delhivery, GoJavas, DotZot, among others. As per various news articles, Delhivery, based in Gurgaon, had raised Series D funding of $85 million from Tiger Global Management, this year and GoJavas raised $20 million from Snapdeal in October. As per the documents obtained from the Registrar of Companies, Ecom Express had raised INR 280 crores (nearly $45 million) in June this year from Warburg Pincus (a much higher number was floating around in news article). They had raised an earlier round of INR 80 crores from Peepul Capital in August, 2014. The company aims to use these funds to expand to 450 cities across India by March 2016.

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The e-commerce industry in India is still in its initial phase with major players like Amazon and Flipkart registering double digit growth year-on-year. Logistics, being an allied industry, is also expected to grow in tandem, in coming years. In turn, these players will also determine the success of e-commerce players by coming up with innovative solutions to cater to Tier-II and III cities.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

MySmartPrice, which offers an online price comparison platform and recently raised $10 million from Accel and Helion, has reported a revenue of INR 16 crores in FY 14-15. The company is still in its early years and registered a growth of 255% over the previous fiscal.

MySmartPrice is owned and operated by MySmartPrice Web Technology Private Limited. It was founded by Sitakanta Ray and Sulakshan Kumar in 2011. It offers an online price comparison engine which enables the users to find prices as well as deals and offers from all major e-commerce stores in India. The site claims to be used by 4 million users every month across India. The company had raised INR 63 crores funding (INR 50 crores from Accel Partners and INR 13 crores from Helion Venture) in June 2015.

Financial performance of MySmartPrice

The company earned revenue of INR 15.9 crores in FY 2014-15 as against INR 4.5 crores in the previous financial year and registered a profit of INR 10 lacs compared to a loss of INR 38 lacs the previous fiscal. The following graph presents their revenue and profit/loss figures since their incorporation:

Around 80% of the revenue for the company comes in the form of affiliate income (commission from promoting affiliate products on the site) and 18% comes in from advertising and online directory services. The major expenses include employee expense (48%) and advertising and marketing expense (23%).

Multiple online ecommerce stores operate in the country and discounts galore, websites like MySmartPrice offer an easier way to access the products and discounts across various platforms. Their competitors include Junglee, Pricejugaad, Compareraja, BuySmaart, Shop Pirate, Buyhatke, Smartprix, Pricedekho among others. With their model shifting from price comparison across online platforms to including local retailers to list prices of their products, a new space seems to be emerging which would be something to watch out for.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Shopclues reported its revenue figures for FY 2014-15 at INR 79.2 crores with a loss of INR 101 crores. This is a revenue growth of ~150% over INR 31.6 crores in the previous fiscal with a slightly higher increase in the loss figure (INR 38 crores loss in previous fiscal).

To put these numbers in perspective, this revenue is roughly half of what Snapdeal’s revenue (INR 168 Crores) was in FY13-14 and while the latter’s loss in the same year was about INR 265 Crores, slightly more than 2.5 times that of Shopclues’ loss this year.

About Shopclues

Shopclues (Clues Network Private Limited) was founded by Radhika Aggarwal, Sandeep Aggarwal and Sanjay Sethi in 2011. Shopclues.com is an online marketplace and provides a platform to buyers and sellers through their website. It operates in the Indian online retail industry which is dominated by major players like Amazon, Flipkart and Snapdeal.

Revenue Model

Shopclues offers the customers an online marketplace to purchase retail products, the charges for which contribute to its revenue.

Shopclues also offers advertisement and marketing services to the companies on its website. Its home page, category page, all brands page page, etc. are available to publish ads on. Also, it gives the option of email banners, custom designing of viral deals, sponsored listings as well as the option to insert marketing collateral, retail coupon or product samples in its shipping boxes.

Shopclues’ Revenue and Expenses

Around 64% of the revenue comes from the sale of services and 30% from advertising and marketing services. Advertisement and marketing services, which probably refers to the native ads service to sellers on their platform, has grown considerably in this fiscal and has increased its share in the revenue pie two folds. The following chart and table depict a breakup of their revenue:

[table id=6 /]

The biggest expense for the company is their shipment charges (33%). While the company spent only INR 2 crores on advertisements in FY13-14, this has gone considerably up – INR 25 Crores – in this year, probably attributable to use of mass media advertising channels such as television commercials. The following chart and table give a breakup of their major expense heads.

[table id=7 /]

Shopclues has been trying to differentiate itself in a market dominated by giants, by focusing on unstructured/ unorganized categories which contributes to roughly two-thirds of its gross merchandise sales unlike other marketplaces, which tend to focus on mobile, electronics, computers and branded fashion. They currently hold a market share of less than 10% in the segment.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

In case you are wondering what a ‘unicorn’ is – in business parlance, it is a startup company that has achieved a valuation of a billion dollars or more. India’s much coveted ‘Unicorn Club’ currently features eight startups. While most of them have now become a household name across the country, mahority of them are yet to attain profitability. There is one though, which is much less known among the Indian consumers (understandable so, since it is a B2B business), which not only is a ‘Unicorn’ but has also been consistently profitable since its inception. Mu Sigma reported a revenue of INR 684 crores and a whopping INR 380 crores profit in FY 14-15. This is a 32% growth in their revenue from previous fiscal and the profit stands at 56% of their revenue.

About Mu Sigma

Mu Sigma is a Decision Sciences and analytics firm that helps companies institutionalize data driven decision making and harness Big Data. It specializes in the areas of marketing, supply chain and risk analytics. It was founded by Dhiraj Chidambaram Rajaram in 2004. The company employs more than 3500 ‘data science professionals’ and caters to more than 140 Fortune 500 clients. These include world’s largest retailers, pharmaceutical companies, banking institutions, insurance companies, technology providers, the list goes on. In fact, Microsoft, world’s largest software company, was its first client in 2005 and continues to be till date.

The Growth Story

The growth of Mu Sigma has been spectacular. In 2005, Microsoft became its first client when it began a pilot project with Mu Sigma to understand consumer behavior. That year Mu sigma made INR 1 crore in revenue. Over the course of a decade, it has acquired some of the biggest companies in the world as its client, including Wal Mart and Dell. It secured funding from FTV Capital, Sequoia, General Atlantic and MasterCard over this period, and attained $1 billion valuation in 2013, being profitable all this while. Following chart presents their revenue and PAT growth since their inception.The revenue for Mu Sigma comprises of income from analytics and other IT and business processing outsourcing that it renders to its parent company Mu Sigma Inc. This revenue is recognized on the basis of agreed percentage of return on revenue earned by the Holding Company and fellow subsidiaries. The revenue from domestic business comprises time and material contracts in the nature of data analytics services. The major expense incurred by the company is the employee expense which stands at INR 176 crores (70% of expenses).

When Dhiraj Rajaram had sold his house to start Mu Sigma, even he might not have imagined his company would become India’s largest data analytics company and achieve revenue figures of $100 million. Not only does MU Sigma show that a startup can be profitable but also dominate the industry across the globe. With revenue and profits skyrocketing with every passing year, Mu Sigma continues to be an inspiration for entrepreneurs.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Zostel Hospitality, which owns and operates ZO Rooms, has reported its revenue in FY14-15 at INR 2.6 crores.

Its competitor OYO Rooms had reported a turnover of INR 2.4 crores in the same period. Going by these numbers, the two companies appeared to be neck-to-neck at the close of previous financial year.

However, it is in this financial year that both of them and the sector itself, have seen tremendous amount of funds pouring in and expansion as a result. Both companies are in the hospitality industry and are disrupting the budget hotel accommodation space in the country.

The ZO-OYO Rivalry

The ZO and OYO rivalry goes back to April, 2015 when OYO managed to get a stay order against ZO Rooms claiming it stole OYO’s copyright material. This was followed by ambush marketing campaign by ZO on the launch of OYO’s mobile app in May, 2015.

About ZO Rooms

Zostel, which started as a chain of backpackers’ hostels, launched ZO Rooms in December, 2014 to provide affordable budget hotel to travellers. The company was founded by a group of IIT and IIM alumni and incorporated in 2013.

It is an online aggregator of budget hotels and claims to have around 800 hotels across 54 cities in India, on its platform. Apart from OYO Rooms, Stayzilla and other Online Travel Agencies (OTA) like MakeMyTrip, Cleartrip, Yatra, etc. are its major competitors in this space.

Financial Performance of ZO Rooms

ZO Rooms reported revenue of INR 2.6 crores in FY 2014-15 as against INR 27 lacs in FY 2013-14. The company made a loss of INR 1.99 crores as against a profit of INR 2 lacs the previous fiscal. However, these figures may also include the results from Zostel’s another business of backpackers’ hostels chain.

Funding Received and shareholding pattern

As per the documents available with the Registrar of Companies (RoC), the company has raised total funds of INR 37 crores so far. In July 2015, they had filed a funding of INR 30 crores (roughly $5 million) from Tiger Global and Orios Ventures. However, as per media reports, the company has raised a total of $35 million – $5 million in July 2015 and $30 million in August 2015. So far, no documents have been filed with the RoC to reflect the second round.

After the latest round of funding, the shareholding pattern looks like this:

[table id=4 /]

However, rival OYO seems to be taking a lead in terms of funding. It has raised INR 748 crores (as per RoC filings) from its investors in FY 2015-16 alone, to carry out its massive expansion plan.

Other Players in the Budget Accommodation Space

The budget accommodation industry has attracted multiple players in the past 2 years. Apart from ZO and OYO Rooms, these include Stayzilla, Zip Rooms and Wudstay. While ZO Rooms has expanded its network of hotels to 54 cities in India, its major competitors Stayzilla and OYO Rooms claim to be present across 4500 towns and 152 cities, respectively. Recently Wudstay acquired Awesome Stays to expand its reach to over 35 cities across India. Zip Rooms claims its presence in 36 cities.

In October this year, OTAs like MakeMyTrip, Goibibo, etc., in a move to protect their market share, blocked ZO Rooms and OYO from listing hotels on their sites. With a number of players entering the hospitality sector in India, each offering a technology-driven, asset light model with a promise of quality, the struggle to “stay” in competition will be one to watch out for. 

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

The online travel industry is one of the most competitive industries in the country with more than 30 players in the market. With undifferentiated products and comparable services, more often than not, there is little or no loyalty among the customers for the service providers. Tofler explores the financials of one of the top players in the industry – Cleartrip.

Cleartrip.com is owned and operated by Cleartrip Private Limited. It was founded by Stuart Crighton and Hrush Bhatt in 2005. It is an Online Travel Agency (OTA) and provides online booking services for flights, hotels, trains, buses and travel packages. Cleartrip figures among the top 3 OTAs in India along with MakeMyTrip and Yatra with presence of other players like Goibibo and Ezeego.

Financial Performance of Cleartrip

Cleartrip reported a revenue from operations of INR 192 crores in FY14-15 with a loss of INR 29 Crores. Its revenue from operations and loss stood at INR 154 crores and INR 41 Crores, respectively, in FY13-14.

The travel portal hoped to break even in FY14-15, which did not happen but they seem to be moving in that direction for the past two years. They managed to reduce their losses by 28% over the previous fiscal. The following chart presents their Profit/Loss over the past 7 years.

It is however noteworthy that the reported revenue from operations is net of Discounts of INR 38.51 Crores which is not included in the expenses. Discounts amounted to INR 23 Crores in FY 2013-14.

How does Cleartrip make money?

Cleartrip’s revenue comprises of the commission from airlines, hotels, railways and affilates; service charges and cancellation charges on online booking; incentives earned from airlines; sale of tour packages and third party advertisements on the company’s website. A part of the revenue also flows in from the fees it receives from Global Distribution Systems service provider, which provides Cleartrip access to global travel content including bookable airlines, hotels and more.

Service Charges contributed to almost half of their entire Gross Revenue. Following is the breakup of their Gross Revenue Block (without deducting the discounts) of INR 231 Crores (in FY14-15) and INR 173 Crores (in FY14-15).

The company’s major expenses include employee expenses (22%), advertising promotional expenses (21%), credit card collection charges (15%) and commission to agents (7%) in FY14-15.

Segment wise, Air and Hotel combined, contributed to almost entire revenue of the company. Air appears to be the largest operating division in terms of revenue and also the closest to breaking even.

Companies in the OTA industry are trying to offer unique propositions to the customers as the discount models to drive up sales volumes is not feasible in the long run. In one such bid, Cleartrip launched Activities in August, a handpicked & comprehensive collection of activities, experiences and things to do in a city. With Activities, it plans to go the hyperlocal way to reach users across 50 cities. We might witness a new trend emerging soon!

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

While Zomato’s sales team is probably working hard to allay their CEO worries about meeting their sales target, Tofler takes a look at how they have performed in the past!

Zomato, incorporated in 2010, was co-founded by Deepinder Goyal and Pankaj Chaddah. It provides a restaurant search and discovery service through its website and mobile app. Zomato is present across 23 countries including India, UK, US, Australia, etc. and claims to be used in over 10,000 cities.

Zomato Media Private Limited, the owner company of Zomato, has filed its latest revenue figures with the Registrar of Companies. It has reported a revenue of INR 95 crores in FY 2014-15. This is more than 2.5 times the previous year’s revenue of INR 36 crores.

Financial performance of Zomato

Out of the reported revenue of INR 95 crores in FY 2014-15, INR 78 crores has been reported as ‘Revenue from advertisements ‘. Remaining INR 16 crores is reported to be from other sources, these include INR 14.7 crores from ‘Net gain on sale current investment’ and INR 1.4 crores from bank deposits. The company incurred expenses of INR 166 crores in FY 2014-15, thus making a loss of INR 72 crores as compared to a loss of INR 37 crores in the previous fiscal.

Out of INR 166 crores, the biggest expense for the company is employee expense at INR 98 crores. As per their website, their team comprises of over 2000 ‘Zomans’. The company was in the news recently for firing 300 employees.

The following graph summarizes their financial performance over the past 5 years:

Shareholding Pattern

Info Edge (India) Limited is the largest shareholder in Zomato with 45.3%. The founders own 19.92% shares in the company. The shareholding pattern is as below:

[table id=3 /]

With a series of international acquisitions in food-tech space over the past two years and its foray into the online food ordering this year, Zomato seems to be all set to be one of the global leaders in this space.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.