Fashion focused social network turned into a horizontal platform for marketers and sellers, Roposo – TV by the people’s RoC filings for FY18 reveal how the company is slowly but steadily improving its performance.
The revenue earned by the company in FY18, Rs 3.84 crore, is almost 3X its FY17 figure, which was Rs 1.29 crore. Simultaneously, Roposo was able to control its losses by 33.56 per cent, going down from Rs 30.96 crore to Rs 20.57 crore in the FY ending March 2018.
The positive change in revenue for the company can be attributed to its pivot and with a switch from affiliate model to the subscription-based revenue model. The gap between income and loss also reduced significantly from 24X to 5.3X. However, the fact that the numbers are so small that a little change looks significant.
The digital commerce platform ‘Bazaar’ by Roposo also gave the company a greater scope for earning revenue by dabbing into the e-commerce market.
The expenses for the company also went down by 25.63 per cent, from Rs 33.28 crore in FY17 to Rs 24.75 per cent in FY18. In this, the major contribution was of employee benefit expense, which also reduced by 31.65 per cent and stood at Rs 13.82 crore in the latest financial.
It is also important to note how the company has improved on its financial figures even more than it did in FY17, where the revenue growth was 42.1 per cent, losses were reduced by 23.06 per cent, and expenses were controlled by 19.2 per cent.
The company is backed by investors like Tiger Global (investing via Internet Fund III Pte. Ltd.), India Quotient, and Bertelsmann Nederland BV, etc.
Separately, one of the company’s directors Pankaj Makkar left the firm in June this year, revealed RoC filings.
Roposo claims to engage over 7 million buyers and 12,000 sellers over its social selling and TV platform. It somewhat competes with Meesho and Shop101, apart from small difference that it has its own social network unlike the other two who heavily rely on Facebook, Instagram, etc.
It would be interesting to see how the firm manages to perform in future, and gain a stronger foothold in the market as there is definitely a massive scope for improvement, and also keeping in mind how the firm has not raised any money since 2015.