Online furniture store Urban Ladder is looking at a topline growth of 60% in FY17 to reach Rs 90 crore. For the fiscal ended March 2016, the company had registered a three-fold rise in revenues at Rs 56 crore and a three-fold rise in losses at Rs 175 crore. “We are looking at building a sustainable and profitable business in the next 24 months. During the current financial year, we will achieve 60% growth,” Rajiv Srivatsa, COO & co-founder, Urban Ladder told FE.

The company is also looking at reducing its losses over the next two years and to achieve that it has put in place a three-pronged strategy in place. The company has stopped investing in unwanted areas such as television advertising, which it thinks is very expensive. It has pruned its catalogue of products to around 2,000 from about 5,000 a year ago. The company has also put on hold expansion of its warehouses. All these initiatives will lead to substantial savings for the company, he said.

“We have already seen our losses coming down in the last 12 months. By the time we report our numbers to Registrar of Companies next year, you will see 50% reduction in our losses,” Rajiv said without revealing numbers for the last three quarters of this year.

As part of its strategy, Urban Ladder will be setting up offline physical stores in top three cities at an investment of R35-40 crore in 2017. To begin with the first store will be opened in Bengaluru’s Indiranagar area in May this year, which will be followed by Delhi-NCR and later Mumbai. The Bengaluru store will be spread over 7,000 sq ft where it will showcase over 100 selected products for customers to have a touch and feel experience.

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Last week as FE reported, Urban Ladder raised R102 crore from existing investors Kalaari Capital, SAIF Partners, Sequoia Capital and Steadview Capital. A part of this fund will be used to set up offline stores, Rajiv said.

“Last four and a half years we have established a very strong base with a good product portfolio at reasonable price points. Now, our focus is on building a strong distribution channel, improve customer satisfaction levels and reduce costs so as to make it a profitable business in the next 24 months,” he said. To improve distribution, Urban Ladder started selling on Amazon and Flipkart.

Last year, Urban Ladder filed an application with the Department of Industrial Policy and Promotion (DIPP) seeking to convert its current marketplace model into a single brand retailer. This will help the company to sell its products directly to consumers and retain foreign investments.

“We expect some action in this regard by end of March. This will enable us to sell furniture through our offline stores. We will announce our specific plans once we get the government approval,” Rajiv added.

Founded in 2012 by Ashish Goel and Rajiv Srivatsa, Urban Ladder has so far raised $92 million.