Snapdeal, an e-commerce startup, based out of Delhi, has brought down its losses to ₹186 crore in the year ended March FY19, a 71 per cent year-on-year drop from around ₹611 crore loss reported a year ago in FY18, the company claimed.
The news comes in the midst when Snapdeal has been constantly cutting losses by scaling down its expenses and focusing on growing its marketplace by listing more seller-sourced products rather than products sourced from brands.
While, in FY17, Snapdeal’s consolidated losses stood at ₹4638 crore, which was also an 87 per cent year-on-year drop compared to FY18 losses of ₹611 crore.
“This year we continued our focus on driving growth with a lean and capital efficient foundation in the business. Our operating revenue increased 87% YoY basis with a significant reduction of the cost base. The company achieved a significant milestone by achieving cash break even in the month of June 2018 and also made the highest ever net revenue in its history in the month of October 2018,” the company said.
Snapdeal was founded by Kunal Bahl and Rohit Bansal in 2010. Snapdeal provides an online marketplace offering various products across different categories like electronics, mobile, books, fashion, and computers, among others.
Whereas, Snapdeal’s consolidated revenues grew to ₹925.3 crore in FY19, compared to ₹535.9 crore in FY18, which is an increase of 72 per cent year-on-year.
The revenue from operations, or the income generated by Snapdeal from day-to-day sales stood at ₹813 crore in FY19, which is an 87 per cent year-on-year jump from around ₹436.1 crore reported in FY18.
Kunal Bahl, Snapdeal’s chief executive also claimed that the company’s customer base grew by “2.2X and traffic surged 2.3X to 70 million unique users/month (during FY19)”.
“The doubling of our orders in the last one year is actually a two-fold increase in the business of the seller partners on our platform, the majority of whom are small businesses. Each and every order is fulfilled on Snapdeal is by independent, third-party seller partners,” added Bahl.
Till date, Snapdeal also claims to have more than 500,000 registered sellers on its marketplace platform, who have more than 200 million listings on the marketplace.