Vector E-commerce, which is a seller on Flipkart-owned fashion e-tailer Myntra, posted a profit of Rs 9.3 crore for the year ended March 2017, according to filings with the Registrar of Companies and data platform Tofler. In FY16, it had reported losses of Rs 8.7 crore.
Total revenues during the year declined 30.2% to Rs1217.7 crore despite the other income increasing four fold to Rs 30.8 crore. This meant that the company’s operational performance was very weak as it posted a 32% decline in its revenue from operations at Rs1,186.9 crore. Employee benefit expenses dropped 10.5% to Rs 99.2 crore in FY17. Total expenses, too, came down 30.9% to Rs 1,210.4 crore.
The company seems to have been impacted by the March 2016 guideline of the government which prohibited e-commerce firms to source more than 25% of their total sales from a single seller.
Adhering to the new regulation, Myntra in January 2017 added three new sellers – Shreyash Retail, Health and Happiness and Tech Connect Retail – on its platform. Myntra isn’t the only player to have added new sellers on the platform in an effort to reduce dependence on one seller.
While Flipkart on-boarded other sellers such as Health and Happiness and Tech Connect, its rival Amazon has been working with other sellers than just Cloudtail India – a joint venture between Amazon and NR Narayana Murthy’s Catamaran Ventures.
