- Prachi Singh |
London-based fashion retailer Farfetch reported a considerable rise in revenues however its net loss widened to 34 million pounds (44 million dollars) compared to 28 million pounds (36 million dollars) last year, the company said in the accounts filed this week. However, the company posted revenue growth of 74 percent to 151.3 million pounds (198 million dollars) for the year ending December 31, 2017.
The underlying operating loss was 24.9 million pounds (32 million dollars) and loss on an EBITDA basis was down to 21.77 million pounds (28.6 million dollars) compared to 22.89 million pounds (30 million dollars) last year.
According to media reports, FarFetch suffered a loss since it continued investing in the growth measures ahead of its Initial Public Offering. The company said that the value of goods sold on its online platform increased to around 548 million pounds (720 million dollars, while its gross merchandise value jumped almost 81 percent to 547.9 million pounds (720.6 million dollars) last year.
FarFetch saw its business operations in the UK contributing only 12 million pounds (15.7 million dollars) to the overall revenues of 151.3 million pounds while 40 million pounds (52 million dollars) were contributed by Europe market and 98 million pounds (128 million dollars) came from the rest of the world.
Started by Portuguese entrepreneur José Neves in 2008, Farfetch secured a Series F round of investment of 110 million dollars in 2016 followed by the company raising 313 million pounds (397 million dollars) from JD.com in June this year.