Gurugram-based e-commerce platform Snapdeal has demonstrated a distinctive approach among its peers in the horizontal e-commerce domain by consistently placing a priority on profitability. In FY23, the company effectively slashed its consolidated losses by 45%, bringing the figure down to INR 282 Crore from INR 510 Crore in FY22. Remarkably, Snapdeal achieved profitability in the third quarter of the current fiscal year, FY24.
The firm effectively reduced its consolidated Adjusted EBITDA loss by 65.6% to INR 144 crore in FY23, a significant improvement from the INR 419 crore reported in FY22, as stated by the company.
Snapdeal’s Proactive Measures:
“Snapdeal’s improved performance was underpinned by its success in increasing gross margins to 35.5% of revenue in FY 2022-23, up from 31.8% of revenue in FY 2021-22 on a standalone basis,” the company said in its statement.
According to the company, enhanced utilization of analytics in marketing contributed to a heightened efficiency in marketing expenditures. On a standalone basis, marketing and business promotion expenses decreased to 31.3% of revenue in FY 2022-23, marking a substantial decline from 66.6% of revenue recorded in FY 2021-22.
Meanwhile, the company implemented various measures to reduce losses, leading to a 31% decline in its consolidated revenue to INR 388 crore in FY23, down from INR 563 crore in FY22.
Although the company did not disclose specific figures for FY24, its primary focus lies in attaining break-even and enhancing profitability.
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“In the ongoing October-December quarter, we are profitable on a consolidated basis.”
AceVector Limited (formerly Snapdeal) oversees two subsidiary entities: Unicommerce Esolutions and Stellaro Brands. In the fiscal year ending March 2023, Unicommerce recorded a revenue of INR 90 crore, accompanied by a profit after tax of INR 6.45 crore. Meanwhile, Stellaro Brands, the other subsidiary, reported a revenue of INR 2.4 crore but incurred a loss of INR 6.96 crore.
Snapdeal submitted its Initial Public Offering to the Securities and Exchange Board of India in December 2021. Nevertheless, the company decided to withdraw its $152 million IPO in response to subdued sentiments in the public market.
