Snapdeal ops revenue up 14%, losses rise 4x
- ByStartupStory | January 5, 2023
Financials obtained through the business intelligence platform Tofler revealed that e-commerce company Snapdeal’s revenue from operations increased 14% to Rs 539 crore in FY22 from Rs 471 crore in FY21. However, losses increased fourfold to Rs 510 crore as costs for things like employee benefits and advertising rose.
Total expenses increased by 68% to Rs 1,070 crore from Rs 636 crore in FY21, with worker profit expenses increasing by 76% to Rs 284 crore from Rs 161 crore and commercial and promotional expenses increasing by 82% to Rs 321 crore from Rs 176 crore.
The slow revenue growth coincides with a postponement of its planned public market itemization due to a global tech inventory crash brought on by macroeconomic headwinds.
According to reports, Snapdeal was attempting to raise $152 million at a $1 billion valuation. The company, which was established in 2010 by Kunal Bahl and Rohit Bansal, was an early rival of Walmart-supported Flipkart and Amazon. Snapdeal had a valuation of $6.5 billion in 2016, but as competition increased, it fell behind.
The business now focuses on marketing goods to consumers who care about value, like Meesho, a social commerce agency based in Bengaluru.
Meesho’s revenue increased by more than four times to Rs 3,232 crore in FY22 from Rs 792 crore in FY21, according to a January 3 report from ET, while losses increased by 7.5 times to Rs 3,247 crore. Flipkart Internet, the company’s marketing division, reported a 33% increase in working revenue in the fiscal year 2022.
According to ecommerce enabler Unicommerce, India’s e-commerce industry saw a 36.8% year-over-year growth in 2022 despite pressure from inflation, despite more customers returning to physical stores as Covid-19 fears subsided.
Tier-3 cities like Udaipur, Roorkee, and Rohtak experienced year-over-year growth of 64.7% in 2022, while tier-2 cities like Bhopal, Amritsar, and Bhubaneswar experienced a strong 50.9% growth.
Himanshu Chakrawarti was appointed CEO of the Snapdeal market by Snapdeal in November. As president of the Snapdeal market, Chakrawarti joined the company last year.
Outstanding investors like SoftBank and Sequoia Capital back the company.
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