Highlights
Snapdeal Reports Strong Financial Performance in FY24
E-commerce marketplace Snapdeal has showcased impressive financial results for the fiscal year 2024 (FY24). Through effective cost-reduction strategies, the company has managed to slash its adjusted EBITDA loss significantly, dropping by 88% from Rs 144 crore in FY23 to just Rs 16 crore in FY24. Furthermore, Snapdeal enhanced its operating cash flows during the previous fiscal period.
Revenue Overview
According to consolidated financial statements submitted to the Registrar of Companies (RoC), Snapdeal’s revenue from operations increased by 2.1%, rising to Rs 379.76 crore in FY24 from Rs 371.96 crore in FY23.
Primary Revenue Streams
The key revenue sources for Snapdeal consist of:
- Marketing Services: The largest contributor, generating Rs 252.55 crore, however, this represented a decline of 9.6% compared to FY23.
- E-commerce Enablement: Revenue from this segment grew by 14.8% to Rs 103.36 crore, reflecting the increasing appeal of the platform among value-oriented sellers.
- Other Ancillary Sources: This category saw a remarkable increase, with revenues surging over 8X to Rs 23.85 crore in FY24.
Cost Reduction Initiatives
Snapdeal’s strategic emphasis on cost-reduction resulted in significant savings across various expense categories:
- Employee Benefits: Spending in this area decreased by 48.5%, falling from Rs 307.53 crore in FY23 to Rs 158.4 crore in FY24.
- Advertising & Promotional Costs: This expenditure was reduced by 23.5%, with costs down to Rs 70.37 crore during the same timeframe.
In total, Snapdeal’s overall expenses declined by 21.4%, from Rs 687.93 crore in FY23 to Rs 540.76 crore in FY24.
Loss Reduction
The improved financial results were reflected in a 43.2% reduction of losses, which amounted to Rs 160.38 crore in FY24. A substantial portion of this loss is attributed to non-cash factors, including a revaluation of a put option held by Unicommerce investors, totalling Rs 110 crore. This led to an adjusted EBITDA loss of Rs 16 crore, indicating the company’s progression towards profitability.
Stake Reduction in Unicommerce
As part of its financial strategy, Snapdeal decreased its stake in Unicommerce, raising Rs 33 crore from a secondary sale of 3.4% of its stakes in May/June 2024 ahead of the IPO. Moreover, the company offered a sale of 9.2% stake for Rs 81 crore during the IPO concluded in August 2024.