Indian e-commerce company Snapdeal trims losses by 43% to Rs 160 crore in FY24

Gurugram-based ecommerce company Snapdeal has reported a steady performance in fiscal year 2024, with its revenue increasing and its losses narrowing significantly. 

The company attributes much of its improved financial health to targeted cost-reduction measures and growing traction among value-focused online shoppers.

Snapdeal’s consolidated financial statements, filed with the Registrar of Companies, show that its revenue from operations grew 2.1% in FY24 to reach Rs 379.76 crore, compared with Rs 371.96 crore in FY23.

The bulk of the revenue came from marketing services, which contributed Rs 252.55 crore, followed by e-commerce enablement, which brought in Rs 103.36 crore. The company’s income from other sources also surged more than eightfold to Rs 23.85 crore, reflecting a diversification of revenue streams. Overall, Snapdeal’s total revenue touched about Rs 384 crore in FY24.

Focused on achieving profitability

Snapdeal’s cost-cutting strategy played a major role in bringing down its adjusted EBITDA loss by 88% to Rs 16 crore in FY24, a sharp improvement from the Rs 144 crore reported in FY23.

The company’s total expenditure fell 21.4% year over year to Rs 540.76 crore in FY24, primarily due to significant cuts in employee benefits and advertising costs. Employee benefits expenses dropped 48.5% to Rs 158.4 crore, while advertising and promotional spending was cut by 23.5% to Rs 70.37 crore.

Losses decline by over 43%

The company’s net loss decreased 43.2% to Rs 160.38 crore in FY24, down from Rs 282.20 crore in the previous fiscal year. A large portion of this loss is attributed to non-cash items, including a revaluation of a put option held by Unicommerce investors amounting to around Rs 110 crore.

When factoring out these non-cash charges, Snapdeal’s adjusted EBITDA loss stands at Rs 16 crore, demonstrating the company’s progress toward reaching profitability, according to media reports.