SnapDeal Records a Loss of Rs 4,647 Cr for fiscal year ending 2017
One of the leading Indian eCommerce platform, Snapdeal, records loss for the consecutive year 2017. It recorded a loss of Rs 4,647 for the financial year ending 2017 consecutive with a loss of Rs 3,340 Cr for the year ending 2016. The company’s annual income has also witnessed a decline of 12.6 percent. It was Rs 1478 cr in the year 2016 and Rs 1291 in the year 2017.
On this numbers, the SnaoDeal spokesperson said that “it reflects the first stage of SnapDeal’s focus on unit economics and business efficiencies. Key highlights in this regard are the reduction in fulfillment cost by more than 20 percent (as a percentage of operating revenue) and reduction in operational losses by nearly 25 percent (excluding non-recurring cost on account of impairment of assets)”. He further explained company’s plans to increase the profit margin for the year ending 2017-18.
The company is trying to make all the possible efforts to make rapid progress and out-beat the cut-throat competition. Most of the company’s business is being impacted by the huge competitions. Its competitors, Amazon and Flipkart are making rapid investments to enhance their categories, warehousing, logistics and other user experiences. While these companies are pumping huge money into the business, they are still facing losses. According to the experts, still, a few years are needed to bring these companies to profitability.
However, SnapDeal also pumped USD 950 billion in the last year to pursue fresh strategies and bring a company to the new levels. It also sold its payment service unit, Freecharge to Axis bank for just Rs 385 crore which is much less than that what it had paid for the same in 2015. In January 2018, its logistic arm, Vulcan Express, was acquired by Kishore Biyani’s Future Supply Chain Solutions for Rs 35 crore.
Recently, SnapDeal also reduced its headcount to cut the cost.