In the financial year FY23, Snapdeal, the e-commerce platform, reported revenue of Rs 388 crore, marking a notable reduction in losses by 45 percent to Rs 282 crore compared to Rs 510 crore in FY22.
A significant milestone was achieved by the company as it claimed profitability in the third quarter of the ongoing fiscal year, FY24. Reports from Entrackr showcased a 65.6 percent reduction in Snapdeal's adjusted EBITDA loss, amounting to Rs 144 crore in FY23.
Snapdeal attributes its enhanced performance to the substantial increase in gross margins, rising to 35.5 percent of revenue in FY22-23, up from 31.8 percent in FY21-22 on a standalone basis, as stated by the company in its report.
However, the platform experienced a consolidated revenue decline of 31 percent, reaching Rs 388 crore in FY23 compared to Rs 563 crore in FY22.
Despite this, Snapdeal's recent statement highlighted its current profitability on a consolidated basis for the ongoing October-December quarter.
Himanshu Chakrawarti, CEO of Snapdeal, pointed out the changing trends in consumer behavior. The rise in demand for ethnic wear, sarees, sports and casual footwear, and festive jewellery indicates Indian shoppers' growing penchant for style and comfort. Additionally, the surge in wearables like earphones, headphones, and smartwatches among electronics reflects the tech-savvy nature of shoppers across the country, moving beyond just metropolitan areas. Chakrawarti highlighted these observations during the festival quarter from October to December.
(With Agency Inputs)
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