Snapdeal net losses increase by 43%

Snapdeal’s net losses increased by a little over 43% year-on-year at Rs 270.2 crore in the year to March 31, 2021, the company’s filings with the RoC sourced from business intelligence platform Tofler showed.

Even as expenses rose to Rs 1,168.3 crore in FY20 from Rs 1,087.6 crore in FY19, revenue from operations remained stagnant at Rs 813.9 crore during the year.

Snapdeal said more than 27 million annual buyers and over 380,000 registered sellers transact on its platform. The company claims to have hosted more than 70 million unique monthly visitors during FY19-20. “With continuing focus on improving user experience, we have seen an increase in visitors and improved conversion rate as against last year. Our operating revenue for FY19-20 is at par compared to last year even with the early impact of Covid-19 pandemic-related lockdowns,” the company said in the filings.

Competitors Amazon and Flipkart that lead the e-commerce market also reported an increase in losses. However, they recorded higher growth in revenue too. Amazon and Flipkart’s revenue from operations rose by nearly 43% and 40% to Rs 1,0847.6 crore and Rs 5,916.3 crore respectively. For Amazon, losses increased only marginally while Flipkart posted a 19.21% rise in net losses.

With the entry of JioMart and deep-pocketed firms like Tata Group set to join list of the e-commerce players, the market is only going to be increasingly competitive in the coming years.