Tech and mobile accessory retailer LatestOne.com is planning to invest Rs 15 crore to strengthen operations and double its customer base to two million this fiscal.
As reported by PTI: LatestOne.com, owned by Hyderabad-based Palred Technologies, also plans to open over 100 franchise-based kiosks in malls over the next few years.
“We are looking to invest Rs 15 crore into strengthening our operations and looking to double our customers to 2 million by the end of the fiscal,” Chairman of Palred Technologies, Palem Srikanth Reddy, was quoted as saying by PTI.
“Going forward, we will also look at opening about 100 kiosks in malls across the country to help build our brand over the next few years,” he added.
At present, LatestOne.com has completed 1 million deliveries and has 1.5 million registered users.
Reddy further said in the April-June quarter, LatestOne.com had achieved break-even on a direct cost basis and has declared a net revenue of Rs 11.35 crore, recording a 67 per cent growth over the corresponding quarter of 2015.
“Our total direct cost of operations including cost of goods, delivery and sales was Rs 11.10 crore, resulting in a contribution margin of Rs 18 lakh, making it possible for us to break-even on a direct cost basis,” he explained.
However, the single biggest challenge the company is facing is how to bring down the number of undelivered goods.
“We are taking several initiatives to reduce the number of undelivered goods from 35 per cent to 25 per cent this fiscal,” Reddy said.
If this target is achieved at the current run rate, the company can become fully profitable, he added.
The company has increased its average monthly net revenue to Rs 4 crore from Rs 2.75 crore over the last 12 months.
The e-commerce company operates as an online retailer, which directly sells products on its website.
It has warehouses in Hyderabad and Delhi and expects to open another in Mumbai in the current quarter, Reddy added.