Unicommerce Prioritizes Profitability and Growth with New Strategies Ahead of IPO: SEBI Approved, Fabindia, Lenskart, and Zivame Onboard
Bengaluru: Unicommerce, an e-commerce enablement company preparing for its IPO, will continue to focus on profitability, according to CEO Kapil Makhija.
Unicommerce’s growth strategy has three main parts: expanding within India, growing internationally, and launching new products, Makhija said.
“Profitability is very important to us, and we plan to keep it that way. We want to grow sustainably,” Makhija told Mint.
In India, Unicommerce aims to attract more brands and increase revenue from existing ones. “Internationally, we’re already in six countries, mostly in Southeast Asia and the Middle East,” he added.
The company will keep launching new products to offer brands a complete solution for managing the post-purchase experience, Makhija said.
Founded in 2012 and acquired by Snapdeal, Unicommerce provides software solutions for e-commerce sellers and direct-to-consumer brands. Some of its clients include Lenskart, Fabindia, and Zivame.
Unicommerce received approval from the Securities and Exchange Board of India (Sebi) for its IPO on Monday. The company plans to offer up to 2.98 crore shares at ₹1 each. Promoters like AceVector Ltd (formerly Snapdeal) will offer 1.14 crore shares for sale. Other investors like B2 Capital Partners and SB Investment Holdings (UK) Limited will sell 22.1 lakh shares and 1.61 crore shares, respectively.
Domestic Expansion
Unicommerce plans to attract more brands and increase revenue from existing clients. Recently, it launched quick commerce integration, allowing brands to fast-track orders.
“In the last year, quick commerce has become popular, especially in health, nutrition, food, and personal care,” Makhija said.
The company also launched UniShip and UniReco, tools for order tracking and payment reconciliation. Its main revenue comes from multi-channel order management and warehouse management systems, but its omnichannel retail management solution is growing rapidly.
Unicommerce is also focusing on Tier-2 and Tier-3 cities. “We can’t ignore metro cities, but we’re now also making efforts to reach smaller cities,” Makhija said.
International Expansion
Unicommerce aims to deepen its presence in Southeast Asia and West Asia while exploring new markets like Africa, Latin America, and Europe. The company had 46 international clients, contributing over 3.23% of its revenue in the September 2023 quarter, up from 2.74% in the previous fiscal year.
Sustainable Growth
“The B2C dropship movement is new, only three to four years old, and that’s where our revenue growth is coming from,” Makhija said.
Automation helps Unicommerce maintain profitability. “We use a lot of automation to keep costs in check, optimizing fixed costs, overheads, and direct costs,” he explained.
About the IPO, Makhija said, “We felt ready for it. It will allow existing and new shareholders to participate and create a public market for our shares.”
Unicommerce’s revenue from operations grew by 52.5% to ₹90 crore in FY23 from ₹59 crore in FY22. Profits increased from ₹5.98 crore to ₹6.64 crore during the same period.
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