Snapdeal's losses widen 125% in FY16; falls to third spot
E-commerce company Snapdeal has posted a 125% rise in its losses against a 56% rise in its revenues for FY16. Snapdeal lost its second spot in the domestic e-commerce market to Amazon India while Flipkart retained its top spot.
According to a report in The Economic Times, Snapdeal's losses widened to Rs 2,960 crore in 2015-16, a 125% jump from the Rs 1,319 crore loss posted in FY15.
At the same time, its revenue grew 56% from Rs 933 crore to Rs 1,456.6 crore in FY16.
According to the report, Snapdeal's total expenses doubled to Rs 4,416.6 crore in FY16 from Rs 2,252.5 crore in FY15.
"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 was quoted in the report as saying.
Snapdeal acquired six companies last year which included – FreeCharge, GoJavas and TargetingMantra.
In November last year, Snapdeal underwent a branding overhaul in deciding to ‘unbox’ itself and launched a new logo and television campaign which cost it nearly Rs 200 crore.
The company recently hired a new chief strategy and investment officer, Jason Kothari, who was the former CEO of Housing.com and is expected to commence work at Snapdeal in February.
Snapdeal was founded in 2010 by Rohit Bansal and Kunal Bahl.
Jasper Infotech, the holding company of Snapdeal, announced in August 2016 that it had raised $21 million in funding from Luxembourg investor Clouse SA.
Earlier that year, the company had also raised funds to the tune of $200 million from Ontario Teacher’s Pension Plan.
The company on Tuesday announced its ‘Unbox India Sale’ which will start from January 21 to 23 it will deal 15% discounts for HDFC bank credit cards and the company also said that it can offer up to 70% off on products.