Greendust.com eyeing $250M in revenues in FY15; to add apparels & medical equipment categories
Delhi-based Reverse Logistics Company Pvt Ltd (RLC), which owns and operates Greendust.com, an e-commerce platform for refurbished goods, is eyeing $250 million in revenues by the end of the current fiscal year (FY14-15). According to its founder and CEO Hitendra Chaturvedi, the company is clocking Rs 100 crore in revenues on a monthly basis, and has been profitable since November last year.
"We ship goods worth Rs 2.5 crore per day at an average order value of Rs 5,000. While 30-35 per cent of the revenues come from our online channel, the rest is from our franchise business," Chaturvedi said, adding that about 30 per cent of the total purchases come via mobile.
Established in 2009, Greendust basically works with original equipment manufacturers (OEMs) to pick factory-rejected products and refurbishes them to sell online and also through its 250-plus franchise stores across India. According to the CEO, a major chunk of the revenues comes from categories like consumer electronics, home appliances, IT and mobiles.
The firm claims to have partnered with more than 40 brands for over lakh products, and is now looking to expand its product portfolio. "We are looking at categories such as apparels, shoes and medical equipment. In the medical devices segment, we will work with OEMs to pick their factory-rejected devices, refurbish and sell them to tier II and III hospitals," mentioned Chaturvedi, an IIT Roorkee alumnus who also holds a MBA degree from Southern Methodist University in the US.
Greendust is also eyeing global expansion. Initially, it is looking at South Asia, Southeast Asia, the Middle East and Africa, and will later expand to other international markets like the US. The company is currently piloting a new programme in Delhi, whereby it will tie up with local retailers to pick used and second-hand products from users in exchange for cash and coupons.
In June 2012, the company had raised $40 million (then Rs 171 crore) in funding from Vertex Venture Holdings Ltd, Kleiner Perkins Caufield Byers (now Lightbox), and Sherpalo Ventures. The funds are being used for building infrastructure & inventory, marketing, and hiring. Currently, Greendust has employee strength of 500 people across India.
Talking about fresh fundraising plans, Chaturvedi said, "It would be premature to talk about funding as of now, since we are already a profitable company with sufficient cash flow."