Online classifieds company OLX India reported a 31% jump in its net profit to Rs 8 crore in FY17, according to the company’s filing with the registrar of companies (RoC).
Online classifieds company OLX India reported a 31% jump in its net profit to Rs 8 crore in FY17, according to the company’s filing with the registrar of companies (RoC). The company, which had posted a net profit of Rs 6 .1 crore in FY16, saw the number jump in FY17 largely on the back of increased revenue earned from the sale of services, which includes revenue earned from subscription and advertising money. The company’s revenue from the sale of services stood at Rs 16.2 crore in FY17 against Rs 68 lakh in the previous year.
OLX did not answer queries emailed by FE at the time of going to print. Moreover, the online classifieds firm reported a 57.8% jump in its overall revenues to Rs 92.5 crore in FY17 compared to Rs 58.6 crore a year ago. The company also posted a 49.5% increase in salaries and remunerations paid to its employees to Rs 50.1 crore in FY17 from Rs 33.5 crore in FY16. Advertising expenditure also went up by 45% to Rs 69.2 lakh in FY17 from Rs 37.9 lakh in FY16.
The company further mentioned that its net worth stood at Rs 18.6 crore in FY17. OLX’s closest competitor in the market is Quikr while traditional players such as Sulekha and ClickIndia were also in the classifieds business before former two became prominent forces. 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, the Philippines, Indonesia, among others.