Snapdeal reports 73% growth in FY19 revenues, narrows losses
Delhi-based Jasper Infotech Private Limited, which owns and operates ecommerce marketplace Snapdeal, reported a 73% growth in consolidated revenues for the financial year 2018-2019, on the back of business model pivot that followed a failed bid to be acquired by its Bengaluru-based rival Flipkart about two years ago.
Consolidated revenues for the year ended March 2019 stood at Rs 925.3 crore against Rs 535.9 in the previous financial year, the company said in a statement. It also reported a 71% decline in consolidated losses at Rs 186 crore in financial year 2018-2019 from Rs 611 crore the previous year.
Revenues from operations saw a year-on-year growth of 87% at Rs 813.8 crore. The company said that it achieved a significant milestone by achieving cash breakeven in June 2018 and also made the highest ever net revenue in its history in October 2018.
“Our transacting customers grew 2.2X and traffic surged 2.3X to 70 million unique users a month. And, all this in a year when ecommerce companies in India burnt through $2.5 billion in the pursuit of growth,” Snapdeal co-founder and CEO Kunal Bahl said in a post on LinkedIn.
“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 fulfilled on Snapdeal is by independent, third-party seller partners,” he added.
Multiple media reports in April this year said that Snapdeal was in talks with its rival ShopClues for a potential acquisition. In the last two years, Snapdeal claims to have added more than 60,000 new seller partners and more than 500,000 registered sellers who have more than 200 million listings on the marketplace.