Snapdeal Narrows Loss to Rs 160 Crore in FY24, Improves EBITDA Performance
one of India's leading e-commerce platforms, has reported a significant reduction in its losses for the fiscal year 2024 (FY24). The company narrowed its loss to Rs 160.38 crore, compared to Rs 282.20 crore in FY23.
Snapdeal: one of India’s leading e-commerce platforms, has reported a significant reduction in its losses for the fiscal year 2024 (FY24). The company narrowed its loss to Rs 160.38 crore, compared to Rs 282.20 crore in FY23.
Additionally, Snapdeal’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) loss declined sharply by 88% to Rs 16 crore in FY24, down from Rs 144 crore in the previous year.
This improvement in financial performance is attributed to a notable decrease in expenses. Snapdeal’s total expenditure for FY24 was Rs 540.76 crore, a reduction from Rs 687.93 crore in FY23.
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The company successfully reduced its employee benefits expenditure by 48.5% year-on-year (YoY) to Rs 158.4 crore, down from Rs 307.53 crore in FY23. Additionally, Snapdeal’s advertising expenditure saw a 23.5% YoY reduction, totaling Rs 70.37 crore.
On the revenue side, Snapdeal’s operating income saw a modest increase of 2.1% YoY, reaching Rs 379.76 crore in FY24 compared to Rs 371.96 crore in FY23. However, market services, which contribute the largest share of revenue at Rs 252.55 crore, experienced a 9.6% YoY decline.
Snapdeal’s enablement income increased by 14.8% YoY, reaching Rs 103.36 crore in FY24, while its income from other sources surged by 8 times, totaling Rs 23.85 crore in the last financial year.
As part of its strategic moves, Snapdeal reduced its stake in Unicommerce, raising Rs 33 crore from the secondary sale of a 3.4% stake in May-June 2024, ahead of its IPO. In August 2024, the company also raised Rs 81 crore from the sale of a 9.2% stake in its IPO.
Founded in 2010, Snapdeal has established itself as a prominent player in the Indian e-commerce sector, catering to value-conscious shoppers. Over the past 14 years, Snapdeal has served more than 100 million online customers, making it a key player in the competitive Indian e-commerce market.
Key Highlights:
- Snapdeal’s loss reduced to Rs 160 crore in FY24
- EBITDA loss down by 88% to Rs 16 crore
- Operating income increased by 2.1%
- Significant reduction in employee and advertising costs
- Increase in enablement and other income
- IPO preparation with stake sale in Unicommerce
Snapdeal’s cost-cutting measures and strategic investments reflect its efforts to strengthen its position in India’s rapidly growing e-commerce market.
