Online classified business OLX India reported a three-fold jump in its net profit at R6.15 crore in FY16, according to the company’s filing with the registrar of companies. The company, which had posted a net profit of R1.6 crore in FY15, saw the number jumping in FY16 largely on the back of its reduced marketing expenditure.
OLX’s closest competitor in the market is Quikr while traditional players such as Sulekha and ClickIndia were also in the classifieds business before OLX and Quikr became prominent forces. Quikr reported four-fold jump in loss to R534 crore while revenue stood at R95 crore for FY16.
During the period, OLX reported total revenue of R58.7 crore, 50% up from R39 crore in the previous year. The company earned R58.4 crore via operations. Unlike Quikr, Olx offers free listings in India.
The company’s expenses rose 40% to R50.8 crore from R36.21 in the previous fiscal year. But the substantial fall in company’s advertising and sales promotion expenses led the profits of the company to jump 3X for FY16. During the year, advertising spend fell to R38 lakh from over R1 core in FY15.
The company paid remuneration of R1.91 crore to company CEO and country manager Amarjit Singh Batra, R43.5 lakh to COO Irwin Preet Singh Anand and R68.8 lakh to CFO Suresh Krishnan. The company declined to comment on the numbers.
Investors in the company include Bessemer Venture Partners, DN Capital, Founders Fund, General Catalyst Partners, Nexus Venture Partners and the Perkins Fund. OLX was acquired by Naspers in August 2010 and the parent company operates OLX in markets such as Brazil, Poland, Philippines, Indonesia and Thailand.