Another quarter, another quarter of not taking questions on the conference call from, even though there appears to have been an improvement for the company, as its cash reserves declined to Rs 45 crore ($6M in Rupee terms) at the end of September 30th 2015, down from Rs 48.8 crore ($7.6M) for the same quarter last year. At the end of the last quarter, Rediff had $8.39 million of cash left, though the rupee equivalent was not disclosed. The company ought to be disclosing its results in rupee terms as well.

The results for Q3 were more “not-negative” than positive, frankly:

– Revenues: were up 1% in Rupee terms year-on-year and 7% sequentially, although a change in the exchange rate meant that there was a $6% decrease in revenues in US dollar terms, to $3.42 million from $3.65M.


– Rediff has been loss making in 28 of its last 30 quarters. This quarter, the loss reported was $1.76 million, down 42% year on year, and flat sequentially.

– India online revenues declined marginally year on year to $3 million.


– Comscore reports that 20% of PC based users in India visits Rediff. The company has now stoppded disclosing the number of users, and last quarter, it had said that said that its total number of unique users was 17.5 million, with a user engagement of 21 minutes per user. There’s no indication about whether there has been an increase or decline in this number.


– A third of Rediff’s marketplace transactions and content readership is mobile.

– Paid email business: 13% growth in revenues, year on year.

– Vubites: 27% growth in revenues year on year.

– Opex was $2.99 million, down 20% year on year.

– Operating ebitda loss was $1.86M, reduced by 35% year on year.


Marketplace contribution

Revenue from Rediff’s marketplace has growth 6% year on year in Rupee terms, and 26% over the last quarter. The contribution of marketplace transactions to’s topline increased to 33% (compared with 31% last year), as the company moves from being a media company to an ecommerce marketplace; Rediff is positioning itself as “a media company on the Internet that derives revenue from marketplace transactions”, in a move to differentiate itself from existing ecommerce marketplaces.

Marketplace transaction margins for Rediff, what it refers to as a “take rate” were 26% of product value (GMV). Rediff believes there is considerable headroom to drive transactions, since less than 1% of its user base is transacting. The company also plans to will implement personalized offers to improve transactions.


View: Earnings release