- E-commerce venture Snapdeal reported a revenue of Rs 916 crore, leading to losses of Rs 274 crore in FY20.
- The company reported about 27 million buyers purchased from its platform in which 85% of orders coming from cities beyond top metros.
- It also reported a 0.8% increase in operating revenue from Rs 839.4 crore in FY19 to Rs 846.4 crore in FY20.
Indian e-commerce venture Snapdeal, on Wednesday, reported a 1% drop in revenue from Rs 925.3 crore in FY19 to Rs 916 crore in FY20. While losses grew by 47% from Rs 186 crore in FY19 to Rs 274 crore in FY20.
Despite the fall in revenue growth, the company reported a 0.8% increase in operating revenue from Rs 839.4 crore in FY19 to Rs 846.4 crore in FY20.
Over the last few months, Snapdeal made several investments in market expansion activities, including “video, vernacular, and other strategic projects aimed at growing in the online market amongst new users,” the company said in the financial statement.
“While the on-going financial year has seen recurrent disruptions and subdued consumer sentiment on account of safety and economic concerns, the benefit of these growth initiatives is expected to play out over the coming years,” the company added in the statement.
However, the company has exponentially increased revenue by 73% from Rs 535.9 crore in FY18 to Rs 925.3 crore in FY19. It has also able to reduce its losses by 70% from Rs 611 crore in FY18 to Rs 186 crore in FY19.
The ongoing COVID-19 pandemic led the company’s losses to grow by 47% from Rs 186 crore in FY19 to Rs 274 crore in FY20.
The company also claimed that about 27 million buyers purchased from its platform in which 85% of orders shipped to cities beyond top metros.
“What the acceleration and online adoption by sellers did in six months, we would have expected to happen in three years. In the last six months, we’ve seen 20,000 new sellers come onto our platform and 10,000 of them just in the last 90 days. Out of them, about 5,000 are manufacturers, which I feel is a very positive trend for India in general and also for the consumers,” Kunal Bahl, Co-founder & CEO, Snapdeal, told Financial Express.
During the COVID-19, Snapdeal had furloughed around 7% of its total 750 employees for a period of three months.
In late July 2019, Snapdeal had raised an undisclosed amount in a venture round from Anand Piramal (Executive Director at Piramal Group).
So far, the company has raised over $1.8 billion in a total of 15 funding rounds, according to the CrunchBase report.
During this year, Snapdeal has added eight vernacular languages in its interface — Hindi, Tamil, Kannada, Telugu, Malayalam, Gujarati, Punjabi, and Marathi to serve a growing number of users in small cities and rural areas.
“In FY20, we have successfully grown the market for value e-commerce. This has been achieved by expanding the online selection of value-priced merchandise and using technology to enable an unstructured segment of retail to sell online,” a Snapdeal spokesperson said.
“The company is currently focused on creating new opportunities for existing offline retailers and manufacturers to grow and strengthen their online presence,” the spokesperson added.