Mumbai: Online fashion retailer LimeRoad more than doubled its revenue in the year ended March 31, but its losses more than tripled, according to a filing with the Registrar of Companies (ROC).
Net losses at the Gurgaon-based fashion retailer increased 227% year-on-year to Rs106.32 crore in the year ended March 2016, from Rs32.54 crore a year earlier. Sales grew 173% to Rs42.6 crore during fiscal year 2015-16, from Rs15.61 crore a year earlier, the filed documents show.
LimeRoad saw a surge in total expenses largely on account of investments in marketing and technology. It reported expenses of Rs148.9 crore for the year, an over three-fold jump from Rs48.15 crore in 2014-15. The company filed its results with the RoC on 3 November.
LimeRoad declined to comment on the financials.
Cash rich e-commerce companies have been engaged in an aggressive discounting battle to win and retain customers. From offering steep discounts to spending heavily on television and print advertisements, e-commerce companies are doing everything to build their brands and keep consumers engaged.
AM Marketplaces Pvt. Ltd., that owns and operates LimeRoad, was founded in 2012 by Suchi Mukherjee, Prashant Malik, Manish Saksena and Ankush Mehra as a fashion discovery portal curating products from various brands, along with a product feature that allows users to create outfit looks on the platform by picking up products from different brands.
Backed by Tiger Global Management, Lightspeed Venture Partners and Matrix Partners India, the company has raised about $50 million in three rounds of funding.