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Snapdeal Slashes Losses By 88% in FY24, Moves Closer to Profitability

• ByStartupStory     |    December 30, 2024

Ecommerce platform Snapdeal, part of the AceVector Group, has reported a remarkable turnaround in its financial performance for FY24. The company’s adjusted EBITDA loss reduced by a significant 88%, dropping to Rs 16 crore from Rs 144 crore in FY23. Operating cash flows also improved during the fiscal, indicating stronger financial management, as per media reports.

Revenue for FY24 increased marginally by 2.1%, reaching Rs 379.76 crore compared to Rs 371.96 crore in FY23, according to filings with the Registrar of Companies (RoC). Marketing services, Snapdeal’s primary revenue driver, contributed Rs 252.55 crore despite a 9.6% decline from the previous year. Meanwhile, enablement revenue grew by 14.8% to Rs 103.36 crore, driven by value-focused sellers, and other revenue surged eightfold to Rs 23.85 crore.

Cost-Cutting Measures Drive Recovery

Snapdeal’s robust recovery can be attributed to substantial cost-cutting measures. The company’s employee expenses were slashed by 48.5% to Rs 158.4 crore, while advertising costs reduced by 23.5% to Rs 70.37 crore. Overall expenditure decreased by 21.4% to Rs 540.76 crore during the fiscal year.

The net loss for FY24 stood at Rs 160.38 crore, a 43.2% reduction from the previous year. This improvement included non-cash adjustments, such as a Rs 110 crore revaluation of a put option. Snapdeal’s adjusted EBITDA loss of Rs 16 crore underscores its steady progress toward profitability, as per media reports.

Monetisation of Unicommerce Stake

Further boosting its financial position, Snapdeal monetised its stake in Unicommerce, earning Rs 114 crore. This comprised Rs 33 crore from a pre-IPO sale and Rs 81 crore through Unicommerce’s IPO in August 2024.

Snapdeal’s management remains optimistic about the future. “The progress in FY24 highlights our commitment to financial discipline and the value-focused ecosystem we continue to build for our customers and sellers,” a Snapdeal spokesperson said.

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