Snapdeal doubles its losses for FY16
| Updated On: 2017-01-18 07:27:07.0 | Location :
Snapdeal paved way for global market leader Amazon to reach number 2 in India, and its difference with market leader Flipkart increased.
One of the leading e-commerce websites in India, Snapdeal has reported a fiery 125 per cent jump in losses to Rs 2,960 crore in FY 2015-16, losing its second spot in India's e-tailing space.
Reportedly, Snapdeal logged a revenue of Rs 1456.6 crore in FY 16, a whopping 56 per cent more than FY 15. However, it is to be noted that in FY15, Snapdeal clocked revenue of Rs 933 crore with the losses of Rs 1,319.2 crore.
The company’s total expenses doubled to Rs 4,416.6 crore in FY16 from Rs 2,252.5 crore in the previous financial year. “In FY16, we invested our capital in building our capabilities across technology, logistics, and seller ecosystem to support the long-term growth of our business,” a Snapdeal spokesperson said.Furthermore, restructuring its business, Snapdeal acquired six companies in the year, including its all-stock merger with wallet firm FreeCharge and stake in GoJavas, a logistics player. It also shifted its business model from chasing gross merchandise value (GMV) to net promoter score or customer satisfaction.
With the mounting losses, Snapdeal paved way for global market leader Amazon to reach number 2 in India, and its difference with market leader Flipkart increased.