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Rediff has $8.39 million in cash left; Reports $2.37M loss in Q4-FY15


Rediff.com has cash and cash equivalents worth $8.39 million left for the quarter ended March 31, 2015. In an earnings conference call, chief financial officer Swasti Bhowmik said that the company expects a cash burn of $1.2 to 1.5 million per quarter for the the next three quarters. For the quarter ended December 31, 2014, Rediff had said it had $9.7 million cash in hand to fund its operation.

Total revenues for the company decreased 6.19% to $3.64 million from $3.88 million in the same quarter last year. Indian online revenues was at $3.19 million, down 6.18% from $3.40 million in the same quarter last year. However, the company said that its operating expenses were down 30% year-on-year (YoY) to $2.83 million  from $4.05 million in the same quarter last year. Rediff’s display advertising business declined 19% y-o-y in revenue this quarter. “We have seen display advertising going through a tough time in the last three quarters which is part of a longer term industry trend,” Bhowmik added.

Operating EBITDA showed a loss of $1.5 million for the quarter as compared to operating EBITDA of $3.12 million in the corresponding quarter last year. Net loss for Rediff for the quarter was $5.01 million compared to net loss of $4.76 million in the same quarter last year.

Focus on e-commerce marketplace 

In the last quarter Rediff said that it is now focusing on its e-commerce marketplace. For the quarter ended March 31, 2015, the company said that the business contributes to 27% of the total revenue mix and grew 35% y-o-y. “We continue to roll out new services for our PC based users and feature mobile users. For example we have instant approval of COD orders and product recommendations in the marketplace business achieved through data based algorithms,” Bhowmik said during the conference call.

Rediff said that the total number of unique users was 17.5 million with a user engagement of 21 minutes per user. It had 17 million monthly unique users, and average 23 minutes per visitor in the last quarter. Bhowmik said that 0.17% of the visitors buy from the marketplace. The company also said that it has a high marketplace ‘take rate’ of 26%, which is the fees earned as a percentage of total transactions.

Rediff said that it has a return rate of 13% on its cash-on-delivery orders. A Hindu Business Line report says that cash-on-delivery return rates may be as high as 40-50% for other ecommerce companies.

TV advertising business

Rediff also said that it is experimenting with building a platform which allows TV advertising companies to benefit from internet technologies. “Today this platform can address 18 million households or roughly about 33 million individuals in India. It is being used experimentally by advertisers by three companies. The platform has support of 10 national TV channels,” Bhowmik said in the conference call.

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