Published
Jul 26, 2018
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Snapdeal announces profitability

Published
Jul 26, 2018

The e-commerce platform Snapdeal has sent an internal letter to employees and their families stating that the business achieved profitability in June 2018 ahead of its goal for September.


Snapdeal has sent an internal letter to employees and their families stating that the business achieved profitability - Snapdeal- Facebook


The Economic Times reported that an internal letter sent by Snapdeal read: “It is with great pleasure and pride that we share that Snapdeal was cash-flow positive in the month of June 2018. Simply put, we now have achieved the milestone of earning money from our business.” This comes only eleven months after the Flipkart and Snapdeal merger deal fell apart and makes Snapdeal one of the only Indian owned e-commerce firms to become profitable.

The business stated that it will reinvest the capital to aid growth and boost volume. Snapdeal has rolled out Snapdeal 2.0 as a new business strategy and has reported that sales volumes are greatly increasing as a result.

The business is now focusing on low price products to value shoppers. Although a focus on value has seen order volumes rise, the average order spend has halved from around Rs 2,250 ($32.8) to Rs 1,100. There have been other benefits to this strategy and the business has reported a great reduction in cash burn due to focusing on cheaper items with higher profit margins. The business has also focused increasingly on fashion and will continue to do so moving forward.

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