Offline to online centered deal platform Crownit has increased its revenue by 48 percent in the financial year 2016-17 as compared to the previous fiscal. The company had achieved a revenue of Rs 5.78 Crore in aforementioned fiscal while its losses stood at Rs 28.74 crore.
Overall expenses reduced by 9 percent for the Gurugram-based company from the last FY, according to the RoC filing by the company. The filings analysis suggest that Crownit had spent Rs 5 (approx) to earn Re 1.
The company’s losses stood at Rs 31.53 crore during FY 2015-16 while it generated revenue of Rs 3.91 crore during the same period.
Crownit app lets customers collect crowns from local businesses in the form of cashback. And they use the cash back to redeem for goodies like online shopping, movie tickets, grocery, fuel talk time, and other utilities.
Earlier in January this year, the company had forayed into six cities- Jaipur, Pune, Hyderabad, Ahmedabad, Kolkata, and Chandigarh. Backed by Accel Partners, Helion Venture – Crownit had secured Series B round last year. Previously, it secured Rs 34 crore in a Series A round from aforementioned investors.
Key developments in deal, reward and cashback space in India
CrownIt’s competitor Magicpin had incurred a loss of Rs 17.3 crore with revenue of Rs 1.83 crore during last fiscal.
The company competes with Nearbuy, Little, and Magicpin amongst others. Recently, Little and Nearbuy were acquired by Paytm in about $30 million.
The upside for deal discovery platforms is limited in India. Nearbuy and Little were failed to create a sticky proposition for consumers and eventually sold out at a fire sale. Fundamentally, deal platforms in India weren’t aggregating what consumers search and crave for
At present, India has a little over 10 million unique customers, who transact online. Out of which only 10% of it roughly seek deals and offers across restaurants, entertainment, travel, body-art, gyms, spas, and salons regularly.