Quikr Cuts Down Losses, Revenue Hikes Up 75%


Quikr expenses rose by 16% in FY19

Last week, Quikr discontinued its AtHomeDiva service

Quikr has also laid off over 900 employees in last two months

Bengaluru-based online classifieds marketplace and hyperlocal services provider Quikr has managed to narrow down its losses to INR 230.04 Cr in the financial year 2019, ending March 2019, compared to INR 237.43 Cr last year.

Quikr has also registered a 74.6% hike in its revenue. In FY19, Quikr generated INR 191.22 Cr versus INR 109.5 Cr in the previous year. According to the Ministry of Corporate Affairs, Quikr spent INR 436.83 Cr in FY19, compared to INR 375.95 Cr last year. The company has noted a 16% rise in its expenses.

Quikr generated INR 85.15 Cr in FY19 from “marketing and management service fee” from its home rental product. In addition, Quikr generated INR 50.1 Cr from paid advertising revenue, INR 49.54 Cr as commissions, INR 39.2 Cr from lead referral fee, and INR 24.48 Cr from on-demand beauty services “AtHomeDiva”.

Founded in 2008 by Pranay Chulet, Quikr is a classifieds website that has also marked its presence in various verticals like cars and bikes, jobs, Quikr Realty and Quikr homes. The company claims to have over 20 Mn monthly unique visitors and is present in approximately 1,200 cities in India.

Last week, Quikr discontinued its AtHomeDiva service, keeping in mind the customer demand.
Quikr spokesperson told Inc42 that it conducted studies of the unit economics of its various verticals. In the study, Quikr zeroed down on the verticals that were not functioning as per its expectations.

The spokesperson added that AtHomeDiva did not prove viable in terms of the return of investments (ROI), therefore the company decided to discontinue the service. In addition to this, Quikr also laid off 30% of its workforce of 3000 across various verticals, which means around 900 employees lost their jobs.

The company’s spokesperson told Inc42, “We [Quikr] have been talking to our customers over the period of time and now we have a good view of how the economics are working in our various categories. Based on this, we decided to rationalise some of our workforce and some things in our operating model. We have changed some things in our market offerings also.”

The mass layoffs and discontinuation of AtHomeDiva services come two weeks after three employees from Quikr were alleged to have scammed Quikr by forging business transactions to fictitious clients to earn a commission. Inc42’s sources said that the company had lost over INR 20 Cr as a result of the scam.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

Unlock 60% OFF
Cancel Anytime
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Quikr Cuts Down Losses, Revenue Hikes Up 75%-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Quikr Cuts Down Losses, Revenue Hikes Up 75%-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Quikr Cuts Down Losses, Revenue Hikes Up 75%-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Quikr Cuts Down Losses, Revenue Hikes Up 75%-Inc42 Media
Quikr Cuts Down Losses, Revenue Hikes Up 75%-Inc42 Media
You’re in Good company