Tech-driven Thai apparel retailer Pomelo Fashion is curbing its losses as sales continue to grow, according to documents filed in Singapore and comments by its co-founder and CEO David Jou.

As an unlisted company, Pomelo is not obligated to disclose financial details, however regulatory filings for the 2022 year have been obtained by Alternatives PE and reported by Tech in Asia.

They show the company booked revenue of US$38 million in 2022, representing a year-on-year growth of 34 per cent, however operating expenses rose 13 per cent to $70.5 million, largely contributed by inventories, employee benefits, and marketing costs. That saw the company lose $31.9 million, down 5 per cent on 2021.

According to Tech in Asia, the results indicate that the company remained strong and had been able to stand toe to toe with the likes of Shein.

Without going into specifics, Jou told Tech in Asia that Pomelo made “significant bottom-line improvements” last year and narrowed its loss by more than 65 per cent.

That followed a cull of about 55 employees – equivalent to 8 per cent of its headcount – in 2022 aimed at moving towards “more sustainable growth”. 

Launched in 2013, Pomelo offers women’s clothing from local designers and international must-have brands. 

Market-wise, around 80 per cent of Pomelo’s revenue in 2022 came from its core market of Thailand. Sales in the country rose 61 per cent in 2022, but dropped in other markets such as Indonesia, Malaysia, and the Philippines, Tech in Asia reported.

The company was reportedly eyeing an IPO in 2022, but the plan has not materialised.