Quikr’s topline grew steadily with operational revenues rising 55% to Rs 64 crore in FY17 as compared to Rs 41.2 crore last year. A large part of this growth came from advertising revenues and marketing service fees at Rs 35.7 crore and Rs 14 crore respectively, the documents show.
It is important to note that Quikr’s FY17 financials are consolidated while that of FY16 were standalone numbers.
“In all our verticals, we have focused on business models that have high margin revenues and hence as our verticals have scaled, the increasing margins in them have reduced our burn in the last 3 years,” said a spokesperson for Quikr in response to ET’s queries.
“On the cost side, we have strongly benefited from the fact that our cost of acquisition is much lower than others because of the cross-selling opportunities between our different verticals,” the spokesperson added.
The FY17 numbers, however, do not reflect the cumulative revenues for the group post its acquisitions and Quikr India claims that its cumulative operational revenue after taking into account its inorganic revenues during FY17 stand at Rs 109 crore implying that inorganic revenues formed 41% of total sales in FY17.
The impact of a transaction-based model which takes a fee for end-to-end services provided by Quikr across its categories has borne fruit mainly across its services, auto, customer-to-customer sales and rentals on its real estate categories. According to investor Kinnevik’s quarterly financial report, Quikr generated 10.8 million responses in March 2018.
For FY18, the Tiger Global Management and Kinnevik AB backed firm claimed to have grown its cumulative revenues (including inorganic revenues) to Rs 202 crore from Rs 109 crore, thus clocking a growth of 85%. The FY18 financials are however unaudited as Quikr India is yet to file its audited financial returns with the registrar of companies.
The firm also maintains that its losses in FY18 have seen a further 40% reduction across the group with Quikr India maintaining it is on track to reach profitability by FY19 – the result of a shift towards a transaction-based full stack model.
Quikr India’s FY17 performance comes even as Swedish investor Kinnevik AB realigned the fair value of its 17% shareholding in the company to about $166 million for the quarter ending March 2018, according to the firm’s quarterly financial report. This implies a 5% growth in Kinnevik’s assessment of Quikr’s valuation to $993 million, up from the $935 million ascribed to the firm at the end of December 2017.
Quikr’s improved performance has been instrumental in the re-assessment of its valuation by Kinnevik. “The company continued to execute on its cross-category strategy and had a strong financial development during the quarter, registering its highest ever revenues and margins, driven by improved product mix,” said the Kinnevik report of Quikr’s performance in Q4 FY18.
Quikr was last valued at about $1.53 billion by mortgage lender HDFC in December 2017 post the former’s acquisition of HDFC Realty and HDFC Red, which gave the lender a 3.5% stake in the Tiger Global-backed firm.
Naspers-backed Olx, which competes with Quikr in India, too saw a similar surge of 58% in revenues at Rs 92.5 crore in FY17, even as profits grew 31% to Rs 8 crore. However, it is important to note that for Olx India, services to global markets formed over 82% of its topline in FY17, a model that is not followed by Quikr.