Yepme.com, promoted by VAS Data Services, which is into fashion labels, narrowed its losses by 74% to Rs 48 crore in FY17. In FY16, the company's losses were at Rs 184 crore.
Yepme.com, promoted by VAS Data Services, which is into fashion labels, narrowed its losses by 74% to Rs 48 crore in FY17. In FY16, the company’s losses were at Rs 184 crore, Sandeep Sharma, co-founder and COO, Yepme told FE. During the period, Yepme’s revenue increased by 15% to Rs 120 crore. Of the total revenue, Yepme generated Rs 30 crore from offline stores, while the remaining Rs 90 crore came from its online operations.
“However, the plan to increase the number of offline stores took a beat last year on the back of demoentisation, which was announced on November 8, 2016. As consumers have started to return to the stores now, we expect sales to pick up from this month onwards. We plan to open three more stores in April, and another five stores May,” Sharma said.
The firm which at present has 8 stores owned by it and another 20 franchise, claims to have an average selling price (ASP) of Rs 1,100 at its retail outlets located in the metros and an ASP of Rs 700 at its store in tier II and tier III cities. According to Sharma, offline operations fetch gross margin of upto 55% wherein 35% goes to the store franchise owners, and 20% is earned by Yepme as its net margin from the sales.The company which started as a private label fashion brand that largely sold on third party e-commerce platforms, is also in the market to raise fresh funds in the range of $10-20 million.
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While a large part of the fresh fund will be deployed towards expanding its operations in India including southern region, close to $5 million will be invested for building its overseas business in the UK. Apart from the UK, Yepme will be expanding to other countries such as France, Brussels, and Amsterdam. In January 2015, the company raised about $13 million from TC Capital, Helion Venture Partners, Capricorn Investment Group and Brand Capital. Nine months later it moped $75 million from Khazanah Nasional.