Published
Apr 30, 2018
Reading time
2 minutes
Download
Download the article
Print
Text size

Snapdeal: increased losses, decreased income for FY 17

Published
Apr 30, 2018

E-commerce business Snapdeal made a net loss of 4,647 crore rupees (approximately 699 million US dollars) during the 2017 financial year as well as a decrease in income, the company said in a filing.


Snapdeal has made a filing stating that the company has made a net loss - Snapdeal- Facebook


Snapdeal had a net loss of 4,647crore rupees for the 2017 financial year that ended in March last year, Snapdeal owner Jasper Infotech said in a regulatory filing submitted to the Ministry of Corporate Affairs. According to the filing, the total was impacted by a 1,797 crore rupee (approximately 270 million dollar) “impairment of goodwill” provision.

Snapdeal had losses of 3,340 crore rupees (approximately 502 million US dollars) over the course of the 2016 financial year and so the 2017 financial year saw its losses increase. Over the course of the 2017 financial year, Snapdeal saw its total income decrease by 12.6 percent to a total of 1,291.3 crore rupees (approximately 194.1 million dollars). The businesses total income for the 2016 financial year had been at 1,478.2 crore rupees (approximately 222.2 million dollars).

The business told the Economic Times that it is making "rapid progress in driving profitable growth, which will be reflected in the results for the financial year 2017-18" and so is expecting more positive results.

Among India’s e-commerce giants, Snapdeal is not alone in incurring great losses. Both Flipkart and Amazon, the two largest of such firms, also operate in losses in the country and may not hit profitability for several years, according to analysts.

Recently, Snapdeal has made layoffs in its workforce to reduce costs and also sold Freecharge, its payment services unit, last year to Axis Bank for 385 crore rupees (approximately 57.8 million dollars) which as significantly lower than the price for which it had paid for the business. Snapdeal’s Vulcan Express logistics business was also sold to Future Supply Chain in January this year.

Copyright © 2024 FashionNetwork.com All rights reserved.