Fashion e-commerce platform Voonik recorded an impressive 77% revenue growth in FY23, reaching Rs 39.57 crore, up from Rs 22.5 crore in FY22. The Sequoia-backed company generates the majority of its revenue from the sale of fashion wear across various categories.
Voonik has successfully raised a total of Rs 309.07 crore in funding over nine rounds. It competes directly with other fashion e-commerce platforms like Limeroad, Craftsvilla, and Myntra.
The Bangalore-based company currently stands at a valuation exceeding Rs 400 crore. Founded in 2013, Voonik’s shares are divided between co-founders Mohammed Sujath Ali and Navaneetha Krishnan Jaganathan, with the former holding the majority stake in the company.
Surprisingly, the company’s expenses surged more than its revenue, rising by 80% in FY23 compared to FY22, when expenses were Rs 19.48 crore. Employee benefits account for more than half of the total expenses, with significant contributions from legal and professional fees and travel costs.
In a strategic move to expand its operations, Voonik acqui-hired three startups Zohraa, Picksilk, and Styl, following its acquisition of TrialKart last year. Earlier, in 2018, the company pivoted to set up offline stores in tier II and III cities through a franchise model.
With these developments, Voonik witnessed a more than 15% increase in profits in FY23, reaching Rs 3.55 crore, up from a similar figure in FY22.
Alongside the rise in expenses, the company also saw its current EBITDA margin increase by 11.19%, while its ROCE climbed to 15.04%.