Reliance Industries Limited’s Reliance Retail expects its fashion e-commerce business Ajio to turn a profit this December. The business had previously targeted the milestone for the end of the 2024 financial year but is ahead of schedule.
“Reliance wanted profitability in Ajio by this fiscal year and it is achieving it in December itself,” an anonymous executive at the business told ET Bureau. “The focus going forward will be on profitable growth since Reliance doesn’t want to burn money when the business has achieved scale.”
Ajio retails a multi-brand selection of clothing, accessories, and lifestyle goods. Reliance Retail has harnessed its expansive portfolio of both Indian and international brands to offer a wide range of products with a focus on premium labels. By premiumising its offering, the business has increased its average ticket size which has helped to boost revenue.
This month, Ajio is expected to reported earnings before interest, tax, depreciation, and amortisation totalling between Rs 6 crore and Rs 8 crore, according to ET Bureau’s sources. The business has worked on reducing its logistics costs by fulfilling the majority of its orders from brick-and-mortar stores located close to the end delivery point as well as reducing its return rates.
Reliance Retail launched Ajio online in 2017, according to its website. The online business has five different storefronts for everything from value to luxury shopping.
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