E-commerce firm Askmebazaar, with an annualised gross merchandise value (GMV) of around $800 million, is looking to break-even this year. The firm, which operates currently in 50 cities, is looking to achieve this target by September.
Talking to FE, Askmebazaar CEO Kiran Murthi said, “Since Diwali there has been a change in priority from growth towards break-even. The next phase is about making money.”
Askmebazaar will try to achieve break-even in the larger metros first. “If we meet this objective in the larger cities then we can get into the smaller towns,” Murthi said. It expects to achieve this target through higher volumes and scale without much of the price discounting incentives.
The e-commerce player owned by Malaysian group Astro Holdings has taken a very differentiated and product conscious strategy to remain relevant in the Indian e-commerce market, said Murthi.
The core focus of Askmebazaar, which follows an inventory less model, has been to create a platform for the traders or merchants. The e-commerce player had experimented with many models including a portal for listing by merchants, but this did not find many takers.
According to Murthi, Askmebazaar has remained focused on the commonly used branded products as this helps them in keeping the cost of acquiring them at lower while also ensuring higher volume.
Murthi said, “We are not competing with the big guys and are doing what is best for our merchants.”
The Indian e-commerce market is expected to cross $100 billion by 2020 from the level of $16 billion in 2015, according to report by Deloitte.
“A 6X growth over 5 years is envisaged for e-commerce driven by factors like new-age technology, convenience, higher adoption rates and larger reach,” the report said.