Sequoia Capital backed fashion e-commerce portal Voonik is looking to raise around $10 million from existing as well as new investors, within the next two quarters. The next fund raising is crucial if the company is to achieve breakeven, a top company official said. “We will approach our investors for raising next round of funding after three months as we need to raise funds before the next Diwali festival. It is crucial for us to have additional funds before we achieve the breakeven, which we are targeting by end of next fiscal,” Sujayath Ali, co-founder and CEO, Voonik Technologies told FE.
The company will begin talks with the investors – both existing and new investors – about three months from now. “Existing investors are very much supportive. However, we are yet to finalise the details of next level of fund raising. Most probably we will raise before the next festival season kicks in,” he said.
The next level of funding will help the company achieve larger scale and enables it to take on the competition from larger players like Myntra, Ali said.
In July last year, Voonik had raised $20 million in Series B round. Since its establishment, Voonik has raised $30 million in equity and $3 million in debt. Its investors include Sequoia Capital, Times Internet, Seed Fund, Beenox, Beenext and Kunal Shah. In 2015-16, it generated a revenue of R16 crore and a net loss of R84.6 crore, according to a filing with the Registrar of Companies.
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Founded in 2013 by Sujayath Ali and Navaneetha Krishnan, Voonik operates a fashion e-commerce marketplace without any inventory of its own and fulfillment centres. It works with around 20 logistics companies which pick up orders from suppliers and deliver to customers. Its main brand Voonik caters to women and Mr Voonik is a dedicated platform for menswear. Both are operated separately with different apps and websites. Till now, Voonik has seen over 17 million app downloads, of which 30% is from its male customers.
Ali said the company is set to close the current financial year with revenue of R60 crore, an almost four-fold growth over the last year. “We will have higher revenues this year mainly because now we have our own marketplace as compared to previous year when we were operating as affiliates. The commission we earn is higher compared to the earlier model,” Ali said.