New Delhi: E-commerce firm Snapdeal saw its losses mounting to Rs 4,647 crore for the fiscal ending March 2017, impacted by a provision for "impairment of goodwill" of Rs 1,797 crore.
According to a regulatory filing to the corporate affairs ministry, Jasper Infotech, which runs Snapdeal, said it had registered a net loss of Rs 3,340 crore in 2015-16. The company's total income also declined by 12.6 percent to Rs 1,291.3 crore in FY2017 from Rs 1,478.2 crore in the previous year.
When contacted, Snapdeal spokesperson said the financial statement for the year 2016-17 "reflects the first stage of Snapdeal's focus on unit economics and business efficiencies".
"Key highlights in this regard are the reduction in fulfilment cost by more than 20 percent (as a percentage of operating revenue) and reduction in operational losses by nearly 25 per cent (excluding non-recurring cost on account of impairment of assets)," the spokesperson said. He added that the company continues to make "rapid progress in driving profitable growth, which will be reflected in the results for the financial year 2017-18".
Snapdeal has seen its business being impacted severely by the intense competition in the e-commerce segment. While players, including the likes of Amazon and Flipkart, have pumped in billions of dollars in investments, they continue to operate in losses. Analysts are of the view that it will be a couple of years before these players can hit profitability.
Snapdeal has significantly reduced its headcount to rein in costs.
In January this year, it sold its logistics arm -- Vulcan Express -- to Kishore Biyani's Future Supply Chain Solutions in an all-cash deal valued at Rs 35 crore.
Last year, Snapdeal sold its payment services unit, Freecharge to Axis Bank for Rs 385 crore, almost 90 percent lower than what it had paid for the firm in 2015.
Last year, Snapdeal dumped the $950-million takeover offer from Flipkart. Founders Kunal Bahl and Rohit Bansal said the company will pursue a fresh strategy in the Indian market.
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Updated Date: Apr 30, 2018 09:27:15 IST