Indian etailer Koovs more than doubled sales in its half-year, but its pre-tax profits widened following increased investment in marketing.
The fashion business focused on the young, Indian e-commerce market said sales grew 114% to £7.9m in the six months to September 30 as a result of increased brand awareness.
However, Koovs’ pre-tax losses widened to £9.1m, compared with a loss of £5.7m in the first half of 2015.
It said this was “in line with expectations” as the business increases its investment in marketing and technology and expands its operational capabilities.
Koovs chief executive Mary Turner acknowledged that the London-head-quartered business had also been impacted in the short term by “significant” denominations, as the Indian Government replaced two of its notes last month.
With cash-on-delivery a standard feature in India, ecommerce companies have been affected.
“This was a significant move and has caused short-term cash liquidity issues,” the etailer said.
Koovs, which bolstered its management team earlier this year, said traffic to its website increased 132% in the period, and it increased its active customer base 138% to 431,000.
The fashion etailer’s private label has become the most popular brand on the site and now accounts for 40% of its overall sales.
Turner said: “We have delivered on both our strategic and financial objectives and are in line with expectations.
”The increases in our customer base, registered base and social followers will provide an excellent opportunity for future growth.
“Whilst demonetisation had a short-term impact on the market and ecommerce we have seen good growth in November and had some of our best days for sales in December.”
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