Snapdeal Parent Reduces Scale In FY23 Amid Focus On Profitability
Its net losses narrowed to Rs 279.7 crore from Rs 509.5 crore in FY22.
Snapdeal's parent firm AceVector Ltd. has posted a reduction in scale and narrowing of losses, as the company prioritises achieving breakeven.
AceVector—which owns and operates e-commerce platform Snapdeal, e‐commerce enablement platform Unicommerce and house of brands Stellaro—posted a consolidated revenue of Rs 388 crore in FY23, down from Rs 564 crore in FY22. It attributed the fall in revenue to loss reduction measures.
"In the past fiscal year, our company continued its well‐defined focus on the value segment, coupled with a steadfast commitment to staying on the path towards reaching profitability," it said in its filing issued on Friday.
It posted an adjusted Ebitda loss of Rs 144 crore, improving from Rs 419 crore in FY22. Its net losses narrowed to Rs 279.7 crore from Rs 509.5 crore.
The company's standalone gross margin improved to 35.5% in FY23, up from 31.8% in the previous fiscal.
"The company also successfully reduced marketplace expenses, on a standalone basis, to 56.8% of revenue in FY23, down from 65% in FY22. The reduction was achieved through several improvements in the supply chain, including a substantial decrease in returns," it said.
The company also claimed to have achieved profitability, on a consolidated basis, in the October-December FY24 quarter.
In a conversation with NDTV Profit earlier this year, Chief Executive Officer Himanshu Chakrawarti said the plan to build their version of 'Snapdeal 2.0' has been set in motion.
"I think FY24 is the year which is our turnaround year in terms of turning profitable as well as moving on to high growth and high profit rate," he said.
"(We're) essentially trying to build the finest, value lifestyle destination. As far as value lifestyle segment is concerned, a large amount of this business comes from tier-2 and beyond. That's why we say we're Bharat-focused," he had said.
