It’s this time of year when startups are known as Quikr. It’s almost like you wish Putin does not play games and invade a nation or two, especially if it can help to focus attention away from its financial year ended (FY21).
Quikr was once one of India’s first and better-capitalized unicorns when it raised more than three hundred crores in several funding rounds. However, the business model that can prove the claims that it made to its investors is difficult to pin down.
Quikr FY21 has been the same in this respect, at the very least. Although it managed to reduce its losses by around 90 per cent, the top line decreased by 45% during FY21.
The company, which is 14 years old, earns money through four categories: advertising, referral commissions, referral RTO and consulting. Together, the incomes fell by 45% to 60.75 crores for FY21 compared to an amount of 110.41 crores in the previous fiscal year, as regulatory filings reveal.
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Referral and advertising fees were the primary revenue source, which made up 42.88 percent and 44.82 percent, respectively. Advertising revenue was down 40.31 percent to 26.05 million in FY21, down from 43.64 crores in FY20. Referral fees earned fell by 33.62 percent to 27.23 crores in FY21.
The revenue from commissions, RTO and other consulting services also declined by 72.67 percent and 68.58 percent, respectively, to 4.14 crore and Rs 4.14 crore and the equivalent of Rs 3.33 crore for FY21, down from an estimated Rs 15.15 crore and the respective figure of Rs 10.6 crore in FY20.
Quikr has cut its expenses by 76%, bringing it down to Rs 123.9 crore for FY21, down from 514.68 crores in FY20.
Employee benefits costs were the largest cost centre for the company during FY21. They comprise 49% of total costs, which decreased by 59% to 60.78 crores from 149.84 million in the prior financial period (FY20).
The financial cost of Quikr fell 41% to 12.91 crores for FY21, down from 21.83 million in FY20. Information Technology which comprises (web hosting fees and payment gateway charges) was also reduced by 27.66 percent to 5.78 million in the FY21. The previous year Quikr engaged in an internal restructuring that resulted in an increase in legal and professional charges by 22.48 percent to 8.5 crores for FY21, up from 6.94 crores in FY20. 6.94 million in FY20.
The Bengaluru-based business has managed the costs of advertising, repairs, and rent, which have decreased by 83.42 percent and 45.19 percent, respectively, to 4.05 crore and 6.95 crores, respectively. 6.95 crore for FY21.
In the year 2020, the holding company shook off certain business lines, like At Home Diva, Car & Bikes, Home Services and Home rental solutions. Quikr Jobs Flexi. According to its financial reports, the losses from discontinued operations were recorded in the range of Rs 181.87 crore for FY20.
In order to manage expenses, Quikr’s loss decreased by 90% to 55.48 crores for FY21, down from 563.2 crores in FY20. The reduction in losses has also impacted the business’s cash flow, which stood at around 80 crores in FY21 compared to 142.2 million in FY20. At the unit level, Quikr has spent Rs 2.04 for a dollar operating profit.
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Quikr has been a narrator example of what can fail despite the wealth of funding, whether it’s the business model, the people or management. It’s fortunate that it’s still around today with little evidence of the millions of dollars that it has spent, which shows how stark the gap between execution and strategy on the ground could prove to be. For the founder and CEO Pranay Chulet, with an IIT+IIM education along with consulting jobs at some of the top companies, it was better than anyone else could have ever imagined. It’s a miracle that the company continues to promote its failings.
