E-commerce market place Snapdeal owned by Jasper Infotech Pvt Ltd has reduced its losses to ₹186 crore in the year ended March 2019 (FY19), which is a 71% year-on-year drop from around ₹611 crore loss reported a year ago in FY18, according to a company statement on Tuesday.
The company has been constantly cutting losses by scaling down its expenses and focusing on growing its marketplace by listing more seller-sourced products rather than products sourced from brands. In FY17, Snapdeal’s consolidated losses stood at ₹4638 crore, which was also an 87% year-on-year drop compared to FY18 losses of ₹611 crore.
While filing its financials last year, the company said that it had identified “parts of the revenue which were disproportionately loss-making and curtailed during the year in order to realign the business for healthy margins".
Snapdeal’s consolidated revenues grew to ₹925.3 crore in FY19, compared to ₹535.9 crore in FY18, which is an increase of 72% year-on-year.
The revenue from operations, or the income generated by Snapdeal from day-to-day sales stood at ₹813 crore in FY19, which is an 87% year-on-year jump from around ₹436.1 crore reported in FY18.
The company, however, did not mention expense figures for FY19 in its statement to the press. In the previous financial year (FY18), Snapdeal cut its expenses by almost 77% year-on-year from around ₹3146.4 crore in FY17 to around ₹784.1 crore in FY18.
“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 of 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 a statement.
Kunal Bahl, Snapdeal’s chief executive also claimed that the company’s customer base grew by “2.2X and traffic surged 2.3X to 70 million unique users/month (during FY19)".
“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," added Bahl.
Mint reported in May that Snapdeal is also in talks with its rival ShopClues for a potential acquisition deal at a valuation of around $200-250 million. Previously, Snapdeal had acquired fintech company Freecharge, which it later sold to Axis Bank.
Till date, Snapdeal also claims to have more than 500,000 registered sellers on its marketplace platform, who have more than 200 million listings on the marketplace.