New Delhi-based e-commerce startup Snapdeal, owned and operated by Jasper Infotech, has posted ₹514.5 crore in revenue for FY18, which dropped more than 50% from ₹1,105.7 crore in FY17, according to documents filed by the company with the registrar of companies.
It is important to take the slowdown in the revenues, in the context of its losses, which were reduced by 87% to ₹613 crore in FY18, from ₹4,647.1 crore, during the previous fiscal.
Snapdeal, once among the market leaders of the e-commerce domain in India, had to cut its expenses, in order to bring greater efficiency and curtail its piling losses. The e-commerce startup has been finding it hard to stay competitive with the cash-rich giants like Flipkart and Amazon.
Over the years, in order to cut its losses, Snapdeal has moved away from premium branded products and inched towards more seller branded products, to improve margins.
“We want to be the dominant player in the long-tail segment of the market in terms of selling seller-branded selection, which was really what our roots were as a company and company’s target (back) in 2012,” said Kunal Bahl, Co-Founder and CEO, Snapdeal.
Snapdeal was founded by Kunal Bahl and Rohit Bansal in 2010. Snapdeal provides an online marketplace offering various products across different categories like electronics, mobile, books, fashion, and computers, among others.
The startup last raised ₹110 crore in a funding round led by Nexus Venture Partners, more than a year ago, in May 2017.
Snapdeal counts SoftBank Group, Alibaba Group, Foxconn Technology Group, Ratan Tata, Temasek Holdings, and Brand Capital, among its investors. According to Crunchbase, Snapdeal has raised around $1.8 billion in funding across all rounds.