Snapdeal-owned Unicommerce's revenue climbs 53% to Rs 90 crore in FY23

Snapdeal-owned Unicommerce, a Gurugram-based firm in the e-commerce enablement SaaS sector, has reported a 53% increase in revenue, reaching Rs 90 crore. The company also marked its third consecutive year of net profit after tax with an 8% rise in profit, totalling Rs 6.5 crore. 

Operational expansion and cost dynamics

The company's operational scope has expanded, notably in markets like Indonesia, the Philippines, Singapore, Malaysia, UAE, and Saudi Arabia. Despite this growth, Unicommerce faced increased operating costs, rising from Rs 54.4 crore in FY22 to Rs 84.1 crore in FY23.

The major contributors to this hike were employee benefit expenses, server costs, and other office-related expenses, with employee benefits alone accounting for 74% of the total expenditure.

Clientele and service spectrum

Unicommerce's client base is diverse, encompassing sectors like e-commerce retail, beauty and personal care, fashion, electronics, and FMCG. Prominent clients include Myntra, Lenskart, MamaEarth, and BoAT.

The company's SaaS products offer comprehensive solutions for e-commerce operations, including order and inventory management, returns management, and omnichannel management, addressing major business pain points.

Financial health

The company's financial health is further underscored by an 86% jump in free cash flows (FCF), from Rs 7.82 crore in FY22 to Rs 14.57 crore in FY23.

The increase has been instrumental in managing the higher operating costs. Looking ahead, Unicommerce is on track to achieve a revenue target of Rs 120-150 crore in the ongoing fiscal, as per sources close to the developments.

Unicommerce's strategic positioning in the market is strengthened by its association with AceVector Group, housing Snapdeal and Stellaro Brands. The company's growth trajectory and robust client portfolio position it as a formidable entity in the e-commerce SaaS space, with a promising future in both domestic and international markets.