Update: Rajul Jain, a co-founder & Head of Operations has also resigned.
Earlier: Online fashion retailer Yebhi whose board members Raul Rai and Suvir Sujan had quit in November last year, now has a new casualty. NextBigWhat has learned that co-founder Nitin Agarwal, the company’s third director who holds over 20% of the company’s shares has also resigned. Agarwal has resigned from the company’s board with effect from 25th January 2014.
This leaves only co-founder and CEO, Manmohan Agarwal at the helm. The exit of Sujan from the company means that Nexus has written off its investment in the company. Sources tell us that Catamaran has also followed suit but we couldn’t confirm it with Catamaran.
Yebhi has a gross merchandise value in excess of Rs 200 cr and is looking to break-even and attain profitability, Agarwal said in an interview. Yebhi, however, has the Irctc deal going for it. The company won the much contested deal to run the shopping site for the online ticketing site of Indian railways last year. Edited Excerpts.
How has your growth been in 2013-14?
In 2013-14, we haven’t really been pushing growth. We’ve been growing organically by 30-40%, but that’s all.
What kind of traction have you achieved so far? Profits?
I can’t really give you any numbers right now.
Yebhi-IRCTC, how is the tie up going? What kind of turnover are you getting from it?
The tie-up is doing well. We have been getting 300-400k visits to the shopping site daily. And we’re getting a good turnover, can’t share numbers right now.
What is your GMV right now?
Our GMV is in excess of Rs 200 crores.
What are Yebhi’s plans in 2014?
We want to consolidate and grow and attain profitability.
There are rumours of Yebhi shutting or scaling down, is this true?
There will be no shutdown. I don’t know where these rumours are coming from. And, I wouldn’t call it scaling down, I would call it consolidating. We’re looking to break-even and attain profitability.
What do you mean by consolidation?
In terms of consolidation we have reduced several costs, optimised marketing spends, have gone slow on discounting and are trying to optimise on margins the same way in the coming year.
So you are not going to shut down?
No, not at all.
What about Nitin Agarwal’s exit?
He left for personal reasons. He wants to start a new venture. We had formal discussions only about 2-3 weeks back.
Catamaran and Nexus have written off investments? How will you raise further rounds? What is your plan?
The investors have not communicated anything to me formally. We don’t need any further investments. While all the other companies are busy burning capital for top line growth, we just want to create profitability first and break-even. We are not planning on raising further rounds of investment.
By when do you expect to break even?
By next quarter.