The changes in management and strategy at online lingerie retailer Zivame are far from over as former CEO Richa Kar submitted her resignation to the board in February.
The online platform has also reverted to a marketplace model where it presents curated collection across brands.
had reported in January that Chief Operating Officer Shaleen Sinha has taken charge of daily operations after the board-led decision to reshuffle the top deck in the company .The shareholders on board have also appointed managing director of Zodius Capital Shilpa Kulkarni as the representative who would direct the strategic decisions at the company.
In an emailed response to ‘s questions, the company said: “Since this is a widely held company in terms of ownership with five shareholders, who entered the company at various stages of the company’s growth, it was mutually decided by all five shareholders that for the purpose of efficiency and also clarity to the management (that) they appoint one member of the board to be the point person for all interactions with the management. We have found this (to be) very effective for young companies where founders and management may not have the breadth to handle or listen to diverse views from multiple shareholders. This was put into place late last year and has worked very well for Zivame.”
The company spokesperson also added: “The shareholder representative would be active and engaged only in strategic decisions, which would include annual business plan and overall team structure and goals for the forthcoming year, and so in the months of March and April this would be a more engaged role.”
However, Kar continues to be a member of the board and has not di luted or sold her equity in the company said the spokesperson. Queries sent out to Kar remained unanswered till the time of going to the press. A source close to the development added that Kar had to comply with the board’s decision and her involvement was completely ‘coming down’ after the recent discussions.
The company also plans to expand its standalone stores across 10 cities which will retail its private labels. The company , which had raised Rs.250 crore in 2015, moved to a single brand retail platform following the round of funding.
“To broaden our portfolio, we are handpicking and curating exclusive styles from other brands which at any given point of time will contribute less than 20% of to our overall business. There is no change in our retail strategy ,” added the spokesperson.
Mila Star Retail, the entity which manufactures and sells private labels on Zivame, registered a net loss of Rs.20.51 lakh for the financial year ended March 31, 2016, lower than Rs.22.60 lakh recorded for the corresponding period last year, according to data provided by research agency Tofler.
Zivame recorded total expenses of Rs.43.3 crore for investment in gro wing its private label and product design during FY 2015-16 according filings with the Registrar of Companies. The company reported 84% increase in net losses at Rs.54 crore for FY16 and 38% growth in its net sales at Rs.62.6 crore.