Unlike others in the horizontal e-commerce plays, Gurugram-based e-commerce platform Snapdeal has been consistently prioritizing profitability. The firm has managed to cut down losses by 45% on a consolidated basis to Rs 282 Cr in FY23 from Rs 510 Cr in FY22 and claim profitability in the third quarter of the ongoing fiscal year (FY24).
The company successfully slashed its Adjusted EBITDA loss by 65.6% to Rs 144 crore in FY23, down from Rs 419 crore in FY22, on a consolidated basis as per a company statement.
“Snapdeal’s improved performance was underpinned by its success in increasing gross margins to 35.5% of revenue in FY 2022‐23, up from 31.8% of revenue in FY 2021‐22 on a standalone basis,” the company said in its statement.
As per the company, greater use of analytics in marketing helped increase the efficiency of marketing spends, with marketing and business promotion reducing to 31.3% of revenue in FY 2022‐23 on a standalone basis, down significantly from 66.6% of revenue in FY 2021-22.
Meanwhile, the firm’s consolidated revenue declined 31% to Rs 388 crore during FY23 from Rs 563 crore in FY22 due to various loss reduction measures executed by the company.
While the company didn’t share any numbers for FY24, it is focusing on achieving break-even and expanding profitability. “In the ongoing October-December quarter, we are profitable on a consolidated basis.”
AceVector Limited (formerly Snapdeal) has two other subsidiaries: Unicommerce Esolutions and Stellaro Brands. During FY23, Unicommerce recorded a revenue of Rs 90 crore with a profit after tax of Rs 6.45 crore. Its other subsidiary Stellaro Brands’s revenue stood at Rs 2.4 crore with a loss of Rs 6.96 crore during the fiscal year ending March 2023.
Snapdeal had filed its Initial public offering with the Security Exchange Board of India in December 2021. However, the company pulled the plug on its $152 million IPO in the wake of weak public market sentiments.