SNAPDEAL POSTS ₹846.4 CRORE REVENUE IN FY20

NEW DELHI: E-commerce marketplace Snapdeal on Thursday said its consolidated revenue from operations has grown marginally to ₹846.4 crore in FY20.

The company had registered ₹839.4 crore revenue from operations in FY19, the firm said in a statement.

The total revenue dipped marginally from ₹925.3 crore in FY19 to ₹916 crore in FY20 on account of reduction in finance and other income, it added.

“In FY20, Snapdeal continued its investments in market expansion activities that have helped grow the market beyond only brands, urban centres and a primarily English-speaking audience. One-time investments booked by Snapdeal in FY20 on account of such initiatives are factored into the FY20 loss of ₹274 crore from about ₹186 crore in FY19,” it said.

Snapdeal noted that it has invested in video, vernacular and other strategic projects, aimed at growing the online market among new users.

While the ongoing financial year has seen recurrent disruptions and subdued consumer sentiment on account of safety and economic concerns, the benefit of these growth initiatives is expected to play out over the coming years, it added.

The e-commerce firm has also seen more people coming to its platform to shop with the number growing from 19 million in FY19 to 27 million buyers in FY20.

“Consistent with Snapdeal’s focus on growing the value segment, more than 85% of Snapdeal’s orders were shipped to customers living outside the top 10 cities in India,” the online platform noted.

Citing industry data, Snapdeal said the market in India for non-food products (comprising mostly home, fashion and general merchandise) is worth about $282 billion annually. Within this segment, the sale of value/unbranded products (at $212 billion) is nearly three times the size of the branded products ($70 billion).