Snapdeal has made remarkable progress in improving its financial performance, reducing net losses to ₹160.38 crore in FY24 from ₹282.20 crore in FY23—a reduction of 43%.
The company also managed to cut its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) loss by an impressive 88%, bringing it down to ₹16 crore in FY24 from ₹144 crore in the previous year. These improvements were largely driven by a sharp decline in operating expenses.
Expense Cuts Drive Financial Turnaround
Snapdeal’s total expenditure fell to ₹540.76 crore in FY24, down from ₹687.93 crore in FY23. The biggest saving came from employee benefits, which dropped 48.5% year-on-year to ₹158.4 crore, compared to ₹307.53 crore in FY23. Advertising costs also saw a 23.5% reduction, coming down to ₹70.37 crore.
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Revenue Performance
While Snapdeal’s operating income grew modestly by 2.1%, reaching ₹379.76 crore in FY24 from ₹371.96 crore in FY23, its market services revenue—its largest segment—declined by 9.6% year-on-year to ₹252.55 crore. However, enablement services revenue increased by 14.8%, reaching ₹103.36 crore, and income from other sources skyrocketed eightfold to ₹23.85 crore in FY24.
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Strategic Stake Sales Ahead of IPO
Snapdeal also raised funds by selling stakes in Unicommerce. In May-June 2024, the company earned ₹33 crore from a secondary sale of a 3.4% stake. Later, during its August 2024 IPO, it generated ₹81 crore by selling an additional 9.2% stake as part of an offer for sale.
Through strategic cost-cutting and targeted revenue generation, Snapdeal has taken significant steps toward financial stability, showcasing its focus on efficiency and long-term growth.
