The company said that its losses, on a standalone basis have increased exponentially since 2012. The company reported losses of Rs 0.4 lakh in fiscal year 2012. However, in 2013, losses went up to Rs 10.2 crore and increased to Rs 1.21 crore in 2014.
Infibeam Incorporation Ltd became the first e-commerce company in India to approach Securities Exchange Board of India (SEBI) to file papers setting in motion a plan to raise funds from the general public.
In the Draft Red Herring Prospectus (DRHP) filed with SEBI on July 1, 2015, Infibeam said that the company has incurred significant losses in the past and may continue to incur significant losses in the future.
The company said that its losses, on a standalone basis have increased exponentially since 2012. The company reported losses of Rs 0.4 lakh in fiscal year 2012. However, in 2013, losses went up to Rs 10.2 crore and increased to Rs 1.21 crore in 2014.
However, Infibeam said that its losses in nine months ended December 31, 2014 were at Rs 7.63 crore.
In a consolidated basis, the company's losses have moderated to Rs 9.64 crore in the nine month period ended December 31, 2015 as against Rs 25.94 crore in 2014, Rs 24.91 in 2013 and Rs 10.82 crore in 2012.
Infibeam said that it has incurred these losses as it has a limited operating history. It warned potential investors and said that its operating expenses may increase in the future due to various factors. "As a result, any decrease or delay in generating additional revenue could result in substantial operating losses which would have an adverse effect on our business, results of operations and financial condition."
It said, "There can be no assurance that we will turn profitable in the future or that the price of our Equity Shares will not be significantly and adversely affected."
The company is looking to raise Rs 450 crore and use Rs 235 crore to set up cloud data centre and purchase of property to set up registered and corporate office of the company.
Rs 37.5 crore will be used to set up 75 logistics centres and Rs 67 crore to purchase software.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=logo}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}