- Pomelo Fashion’s revenue grew 34% to $38 million in 2022.
- The company narrowed its losses by 5% and focused on sustainable growth strategies.
- Pomelo, founded in 2013, has raised $125 million and considered an IPO in 2022.
Thailand-based fashion e-commerce firm Pomelo Fashion demonstrated resilience in 2022, posting a 34% year-on-year revenue increase, reaching US$38 million, according to financial statements obtained from Alternatives.pe, a platform that tracks regulatory filings in Singapore.
Despite the gradual resumption of offline activities and intense competition from rivals like Shein, Pomelo managed to narrow its losses by 5% to US$31.9 million in 2022.
Strong performance in core market
Pomelo’s core market, Thailand, accounted for approximately 80% of its revenue in 2022, experiencing a 61% increase compared to the previous year.
However, the company faced challenges in its other markets, with minimal revenue growth in Singapore and declines in Indonesia, Malaysia, and the Philippines.
Optimizing costs for sustainable growth
Pomelo’s total expenses rose 13% to US$70.5 million in 2022, primarily due to inventories, employee benefits, and marketing costs.
In an effort to achieve more sustainable growth, the company laid off 55 staff members, representing around 8% of its headcount.
CEO and co-founder David Jou stated that Pomelo made “significant bottom-line improvements” in 2023, narrowing its losses by over 65%.
Founded in 2013, Pomelo has raised a total of US$125 million in disclosed funding, according to the Tech in Asia database.
The company was reportedly considering an IPO in 2022, but plans have yet to materialize.
As Pomelo continues to navigate the competitive fashion e-commerce landscape, its focus on cost management and sustainable growth will be crucial for its long-term success.
To read the original article in its entirety: https://www.techinasia.com/thai-ecommerce-pomelo-hit-34-revenue-jump-2022-trimmed-losses
