Snapdeal cuts losses by 71% to Rs 186 cr in FY18-19
New Delhi: Homegrowne-commercemarketplace,Snapdeal, has significantly cut its losses by 71 percent to Rs 186 crores in the financial year 2018-19, as compared to losses of Rs 611 crore it posted in the previous fiscal, the company said in a regulatory filing.
As per regulatory documents filed by Snapdeal, its consolidated revenues grew to Rs 925.3 cr in 2018-19 as compared to Rs 535.9 cr in 2017-18, marking a sharp increase of nearly 73% in a 12-month period, the company said.
The revenue from operations saw a year-on-year jump of 87% to Rs 813.8 cr from Rs 436.1 cr.
“This year we continued our focus on driving growth with a lean and capital-efficient foundation in the business. Our operating revenue increased 87% YoY basis with a significant reduction in the cost base. The Company achieved a significant milestone by achieving cash break-even in the month of June 2018 and also made the highest ever Net Revenue in its history in the month of October 2018,” the company said.
In FY 2016-17, Snapdeal’s consolidated losses were INR 4638 Crores, which dropped 87% to INR 611 Crores in FY17-18 and then further another 71% to INR 186 Crores inFY18-19.
In a blog posted on his LinkedIn account, Kunal Bahl, Snapdeal’s CEO & Co-founder said, “our transacting customers grew 2.2X and traffic surged 2.3X to 70 million unique users/month. And all this in a year when the e-commerce companies in India burnt through USD 2.5 billion in the pursuit of growth.”
Reiterating the neutral nature of Snapdeal’s marketplace, Bahl added, “the doubling of our orders in the last one year is actually a two-fold increase in the business of the seller partners on our platform, the majority of whom are small businesses. Each and every order is fulfilled on Snapdeal is by independent, third-party seller partners”.
In the last two years, Snapdeal has sharpened its focus on the needs of the value-conscious buyers in India. More than 80% of its users come from the small towns and cities of India. This market of nearly 400 million potential buyers is the fastest-growing segment in Indian e-commerce. In the last two years, Snapdeal has added 60,000+ new seller partners, who have added over 50 Million new listings. Snapdeal now has more than 500,000 registered sellers, who have more than 200 million listings on the marketplace.