Snapdeal Cuts Losses by 43% with Strong Growth in FY24

Snapdeal, the Gurugram-based e-commerce platform, has reported a solid performance for the fiscal year 2024, with a notable improvement in its financial health. The company’s revenue grew by 2.1%, reaching Rs 379.76 crore, up from Rs 371.96 crore in FY23. This growth was driven by cost-reduction measures and increased interest from value-conscious online shoppers. The bulk of Snapdeal’s revenue came from marketing services, contributing Rs 252.55 crore, followed by e-commerce enablement, which brought in Rs 103.36 crore. Additionally, the company saw a more than eightfold increase in income from other sources, reaching Rs 23.85 crore, demonstrating a successful diversification of its revenue streams.

The company’s efforts to achieve profitability played a key role in reducing its adjusted EBITDA loss by 88%, bringing it down to Rs 16 crore in FY24, a sharp improvement from Rs 144 crore the previous year. Snapdeal’s total expenditure also decreased by 21.4% to Rs 540.76 crore, driven by employee benefit cuts and reduced advertising spending. The company’s employee benefits expenses fell by 48.5% to Rs 158.4 crore, while advertising costs were cut by 23.5%, dropping to Rs 70.37 crore.

Snapdeal’s net loss for FY24 stood at Rs 160.38 crore, a reduction of 43.2% compared to the previous fiscal year, when it reported a loss of Rs 282.20 crore. The decrease in loss was largely attributed to non-cash items, including a revaluation of a put option held by Unicommerce investors, amounting to Rs 110 crore. After factoring out these non-cash charges, Snapdeal’s adjusted EBITDA loss was Rs 16 crore, signaling that the company is on track to reach profitability in the near future.