Snapdeal reports revenue of Rs 904 Cr, a 38% fall from previous fiscal

Jasper Infotech, the parent company of e-commerce marketplace Snapdeal, clocked a consolidated revenue of Rs 904 crore in the fiscal year 2016-17, a significant 38 per cent fall from the previous fiscal, reveals ROC filings.

The Softbank-backed company filed a revenue of Rs 1,457 crore from operations in 2015-16. 

The e-commerce platform is yet to file the profit and loss statement for the FY 2016-17. Making more than 2.5X losses than revenue, the company posted a consolidated loss of Rs 3,315 crore in FY 2015-16.

This is the first such revenue details that have come out in public after Snapdeal walked away from the merger deal with Flipkart in late July last year, and decided to walk down an independent path.

But, the numbers from the previous fiscal failed to reflect the new strategy Snapdeal 2.0 decided to follow post the fallout of merger talks.

In an email sent to Snapdeal employees, Kunal Bahl and Rohit Bansal had then said that they firmly believe in their new direction – Snapdeal 2.0 – part of which is a laser focus on being a champion for all sellers in India, enabling anyone to set up a store online in a few minutes and focusing on providing large selection of products at great prices to consumers.

After engaging with multiple companies (from Paytm to PayPal) for a possible sale of Freecharge, Snapdeal finally sold digital payments unit FreeCharge to Axis Bank for about $60 million in July last year.

Experts say that it will be difficult to comment on the current status of the company without delving into the profit-loss numbers. However, the reduced consolidated revenue of the previous year may reflect that the company decided to narrow operations in FY17 and it could be an attempt to seek the path to more balanced business approach.

Snapdeal, which has raised a total of $1.8 billion and once the close competitor to Flipkart, started losing the market as the rivalries in the e-commerce segment diversified among three players Flipkart, Amazon, and Snapdeal.

The post has been updated with new figure owing to Snapdeal losses. We regret the error.

The development was first reported by VCCircle.