Online lingerie startup Zivame recently released its financials for FY 18. According to the documents, sourced from Tofler, the company has recorded a 56.4% increase in its revenues for the financial year 2017-18 at $12.81 Mn (INR 94.26Cr) from $8.19 Mn (INR 60.25 Cr) in the previous year.
Zivame, which has a net worth of $13.59 Mn (INR 100 Cr), has had a year worth boasting. Here’s a quick look at some FY17-18 figures of the company:
- Zivame reported revenue from operations of $11.77 Mn (INR 86.64 Cr) in FY18, a 63.5% increase from $7.2 Mn (INR 52.97 Cr) in the previous year
- The company has made a 6.6% increase in the expenses for benefit of its employees from $2.96 Mn (INR 21.8 Cr) in FY17 to $3.15 Mn (INR 23.25)
- The total expenses were $17.17 Mn (INR 126.36 Cr), a 7.19% increase from $16.01 Mn (INR 117.88Cr) in the previous year
- The company also controlled its losses by 44% as it posted $3.36 Mn (INR 32.11 Cr) Net loss after $7.83 Mn (INR 57.62 Cr) in FY17
In a What The Financials analysis of top lingerie players for FY17, Inc42 Datalabs observed that Zivame spends 45%-60% of its total expenses on marketing and advertising as well as on its staff expenses.
The analysis revealed that if Zivame can control its cash burn, manage its resources better, and garner some support from its investors, it can arrive at a place where it can perfect its business model and start to win back the ground it has lost to its competitors.
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The major competitors we are talking about here are Clovia, followed by players like PrettySecrets, ButterCups among others.
Zivame: Plans Ahead
Founded in 2011 by Richa Kar, Zivame began its operations as an aggregator of lingerie brands. Since then the company has established over 26 brand stores and aims to reach 100 stores by the end of FY19.
In September 2016, the company pivoted to a private label business in a bid to improve its margins and thereby boost its revenues. However, last year — possibly smarting from the FY16-17 losses — it discarded the idea and rolled back the marketplace model again. However, the changes in its business model have not yet been implemented.
The company claims that conversion rates at stores are two times higher than online sales with the average order value being at least 1.2 times higher. It aims to clock in 100K orders a month.