Snapdeal revenues during the period jumped over 400% to Rs 937.69 crore from Rs 168.16 crore, largely on the back of seasonal sales.
Homegrown e-commerce firm Snapdeal, which is at the third position by gross merchandise value, saw its losses widening five times to Rs 1,319.29 crore for the year ended March 31, 2015 from Rs 264.62 crore in FY14, according to the company’s filing with the registrar of companies. The Jasper Infotech Pvt Ltd-backed company competes with e-commerce firms like Flipkart and Amazon India.
Revenues during the period jumped over 400% to Rs 937.69 crore from Rs 168.16 crore, largely on the back of seasonal sales. Snapdeal recorded revenues from sales worth Rs 862.34 crore for FY15 from Rs 173.23 crore in the previous year. Rohit Bansal, co-founder of Snapdeal, said that two-third of its sales come from Tier II and Tier III cities.
In FY15, Snapdeal’s total expenses spiked to Rs 2256.97 crore from Rs 432.78 crore in the previous year, largely on the back of its advertising promotional expenses and the discounting spree. Snapdeal poured Rs 1059.67 crore on advertising expenses, which form nearly half of the total expenses for the year. In FY15, e-commerce players were seen engaging in a fierce online battle, offering competitive discounts on flash sales.
Snapdeal also ranks second in the list of unicorns with Ola Cabs, with a valuation of around $5 billion each, behind Flipkart at $15 billion. Flipkart Internet, the consumer-facing platform of Flipkart, reported revenues worth Rs 9,352 crore with losses at Rs 836.5 crore.
Snapdeal has raised $500 million in its latest round of funding led by Alibaba, Foxconn and Softbank in August. Existing investors include Temasek, Myriad and Premji. So far, it has raised $992 million over five years.
Snapdeal had rolled out its native ad platform and Sherpalo for sellers to reduce pressure on sales of merchandise to consumers. Snapdeal also offers a variety of value-added services for its sellers free of charge, but the advertising platform is a paid services which may guide revenues for the FY16.
To expand its presence in the hyperlocal space, Snapdeal acquired a minority stake in Peppertap in September. It led a $ 36-million Series B funding with other investors such as Sequoia, SAIF, Ru-net, BeeNext and JAFCO also pouring money into the grocery delivery platform.