Limeroad started as a fashion marketplace for women in 2012. It brought a concept of social commerce and allowed women to create unique looks from a range of products, on a virtual scrapbook, and share it with others. Today, Limeroad is a platform which sells lifestyle products across categories like apparel, accessories, kitchen utilities and home decor.
A.M. Marketplaces Pvt. Ltd.
As per the MCA records
Tiger Global Management
Matrix Partners India
Lightspeed Venture Partners
What has Limeroad been up to, the last year?
The company was one of the bright upstarts last year, trailing Jabong and Myntra. But it got left behind as competitors like Aditya Birla’s Abof came into the fray. Jabong’s merger with Myntra has made the fashion market even harder to crack. Struggling to make an impact in women’s wear, Limeroad entered the menswear category in May 2016.
Using categories such as home decor and kitchen utilities, Limeroad is attempting to bring in women customers who may otherwise choose different websites to shop for these items. In May, the company said, its GMV for a quarter was about Rs 200 crore last year, but it has been quiet on the targets for this year.
Rs 43 crore: The revenue recorded in FY16. It rose from Rs 15 crore the previous year; a growth of almost three times, but the company grew six times from FY14 to FY15. A slowdown in fortunes.
Rs 106 crore: Limeroad’s losses. Up from Rs 33 crore the previous year and Rs 14 crore in FY14. While Limeroad grew six times from FY14 to FY15, its losses just about doubled. It was not the case this time. To keep pace with its competitors, unit economics has taken a hit.
Rs 75 crore: Advertising expenses were almost one and a half times its revenue. Compare that to FY15, where Limeroad spent just Rs 18 crore. It is quite clear that the push on advertising to bring in revenue increased as competition took away major sales.
The growth in revenue has come at a significant cost. While the revenue almost tripled compared to last year, so did the losses. As things stand today, Limeroad is losing more money than it is making. And the fashion space is only going to get more competitive going forward.