Snapdeal, the e-commerce platform, has marked a substantial upturn in its financial performance, showcasing a resilient fiscal year of 2023.
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The company, headquartered in New Delhi, disclosed a revenue of Rs 388 crore for FY23. This reflects a noteworthy leap from the preceding year, coupled with a commendable 45% reduction in losses, bringing the deficit down to Rs 282 crore from Rs 510 crore in FY22.
Evidencing a striking turnaround, Snapdeal triumphantly declared profitability within the third quarter of the ongoing fiscal year (FY24), illustrating a significant milestone in its financial trajectory.
The company’s steadfast measures were pivotal in ameliorating its adjusted EBITDA loss by an impressive 65.6%, mitigating it to Rs 144 crore during FY23, as disclosed by Entrackr reports.
A pivotal factor in Snapdeal’s remarkable performance has been its successful augmentation of gross margins. In FY 2022-23, the platform achieved a commendable increase to 35.5% of revenue, a notable elevation from the preceding fiscal year’s 31.8% on a standalone basis, as stated by the company in its official release.
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However, amidst the burgeoning revenue success, the platform witnessed a 31% decrease in consolidated revenue, down to Rs 388 crore during FY23 from Rs 563 crore in FY22.
Highlighting its current financial status, Snapdeal announced profitability on a consolidated basis in the ongoing October-December quarter, signifying a robust resurgence.
Commenting on the changing consumer trends, Himanshu Chakrawarti, CEO of Snapdeal, underscored the evolving preferences of Indian shoppers. “From the rising demand for sarees and ethnic wear in fashion to the upswing in sports and casual footwear to festive jewellery, it’s clear that Indian shoppers are embracing style and comfort.
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The surge in wearables like earphones, headphones, and smartwatches in electronics highlights the tech-savvy nature of shoppers beyond metros,” he had said during the festival quarter (October-December).
