Urban Ladder becomes profitable, doubles revenues to Rs 433.97 Cr in FY19
Urban Ladder has been narrowing its losses over the last two fiscal years. In FY18, the furniture brand had reported a consolidated loss of Rs 117.32 crore, and before that, it had reported a loss of Rs 161.17 crore in FY16.
Tuesday November 19, 2019,
2 min Read
Urban Ladder, an omnichannel furniture retail startup has reported a consolidated profit of Rs 50.21 crore for the financial year 2019, according to regulatory filings accessed by YourStory.
The brand has been narrowing its losses over the last two fiscal years. In FY18, the furniture brand had reported a consolidated loss of Rs 117.32 crore, and before that, it had reported a loss of Rs 161.17 crore in FY16.
While the total consolidated revenue of the brand more than doubled to Rs 433.97 crore for FY19. In FY18, Urban Ladder had reported Rs 204.73 crore in revenue.
The filings show that the reason for the profits could be attributed to doubling in revenues and keeping certain expenses in check including employee benefits, among others.
This pattern of keeping costs in check can be seen in tough decisions which the startup has made over the past year.
In February 2019, it was reported the company was going through a funding crunch and had laid-off nearly 90 employees in the quarter ending March 2019. This brought the total headcount of the company down to about 700 employees then.
Earlier this month, Urban Ladder has raised close to Rs 14.91 crore from SAIF Partners, Steadview Capital, and Sequoia Capital India as a follow-on of its Series E round.
All three existing investors have invested close to Rs 4.96 crore each, with a total of 8,352 Series E3 cumulative convertible preference shares (CCPS) issued to them at a premium of Rs 17,830 per share. Before this round, Urban Ladder had raised more than $112.8 million in funding and counts SAIF Partners, Steadview Capital, Sequoia Capital, Ratan Tata, and Kalaari Capital among its investors.
Currently, the startup is spearheaded by CEO and Co-founder Ashish Goel, after Rajiv Srivatsa, Co-founder and former Chief Technology and Product Officer (CTPO) left the startup.
Announcing his exit on LinkedIn, Rajiv said that he would move out of an active leadership role at the end of October but would continue to be an engaged shareholder and board member of Urban Ladder and work with Co-Founder Ashish Goel on strategic initiatives.
Co-founded by Rajiv Srivatsa and Ashish Goel in 2012, Urban Ladder recently entered Chennai, opening a new store and experience centre. The startup currently claims to have 12 stores in New Delhi, Bengaluru, and Pune.
(Edited by Suman Singh)