Snapdeal Posts Steady Performance in FY24, Revenue and Losses Show Significant Improvement

E-commerce company Snapdeal has reported a steady performance in fiscal year 2024, with revenue increasing and losses narrowing significantly. The company attributes its improved financial health to targeted cost-reduction measures and growing traction among value-focused online shoppers.

According to Snapdeal's consolidated financial statements, filed with the Registrar of Companies, revenue from operations grew 2.1% in FY24 to reach Rs 379.76 crore, compared with Rs 371.96 crore in FY23. The bulk of the revenue came from marketing services, which contributed Rs 252.55 crore, followed by e-commerce enablement, which brought in Rs 103.36 crore.

The company's income from other sources also surged more than eightfold to Rs 23.85 crore, reflecting a diversification of revenue streams. Overall, Snapdeal's total revenue touched about Rs 384 crore in FY24.

Snapdeal's cost-cutting strategy significantly reduced its adjusted EBITDA loss by 88% to Rs 16 crore in FY24, a significant improvement from the Rs 144 crore reported in FY23. At the same time, Snapdeal's total expenditure fell 21.4% year over year to Rs 540.76 crore in FY24.

Employee benefits expenses dropped 48.5% to Rs 158.4 crore, while advertising and promotional spending was cut by 23.5% to Rs 70.37 crore.

The company's net loss decreased 43.2% to Rs 160.38 crore in FY24, down from Rs 282.20 crore in the previous fiscal year. A large portion of this loss is attributed to non-cash items, including a revaluation of a put option held by Unicommerce investors amounting to around Rs 110 crore. When factoring out these non-cash charges, Snapdeal's adjusted EBITDA loss stands at Rs 16 crore, demonstrating the company's progress toward reaching profitability.

Key Highlights:

* Revenue from operations grew 2.1% to Rs 379.76 crore in FY24
* Adjusted EBITDA loss decreased by 88% to Rs 16 crore in FY24
* Net loss decreased by 43.2% to Rs 160.38 crore in FY24
* Total expenditure fell 21.4% year over year to Rs 540.76 crore in FY24
* Employee benefits expenses dropped 48.5% to Rs 158.4 crore in FY24
* Advertising and promotional spending was cut by 23.5% to Rs 70.37 crore in FY24