How is the current financial health of Snapdeal?

Snapdeal, an e-commerce business catering to budget-conscious clients, reported a 0.8 percent increase in operating revenue from Rs 839.4 crore in FY19 to Rs 846.4 crore in FY20, despite a Covid-led sales disruption in Q4.

Snapdeal, on the other hand, reported losses of Rs 274 crore in FY20, up 47% (by Rs 88 crore) from Rs 186 crore in FY19 as a result of such activities, according to the business.

While the current financial year has experienced recurrent disruptions and low customer sentiment due to safety and economic worries, the benefits of these growth initiatives are projected to be realised in the next years, according to the firm.

We would have expected the acceleration of online adoption by merchants to happen in three years, not six months. We've had 20,000 new sellers join our platform in the previous six months, with 10,000 of them joining in the last 90 days. About 5,000 of them are manufacturers, which I believe is a very healthy development for India in general and for consumers in particular."

Due to the Covid impact, Snapdeal furloughed about 7% of its 750 full-time employees — 50-55 employees – for three months in May. Snapdeal's most recent big realignment effort, which impacted employees, was in 2017, when the company reportedly fired off about 600 employees while founders Kunal Bahl and Rohit Bansal forewent their salaries to keep on track to profitability.

Snapdeal continued to invest in market expansion activities in FY20, which helped to expand the market beyond just brands, urban centres, and a predominantly English-speaking audience. Snapdeal's FY20 loss of Rs 274 crore, up from Rs 186 crore in FY19, is due to one-time investments made as a result of such efforts, it added.

More consumers are shopping on the company's platform, with the number of buyers increasing from 19 million in FY19 to 27 million in FY20.

According to the spokesperson, the company is continuing to expand its efforts to provide new options for existing offline merchants and manufacturers to grow and strengthen their online presence.

Snapdeal is the online shopping company used all over India. It was found on 4th February 2010. The e-commerce site was founded by Kunal Bahl and Rohit Bansal. After it was found, snapdeal has grown bigger and became one of the largest e-commerce sites in India. In this pandemic situation, the company has made a huge loss and snapdeal revenue 2021 fell by about 44% at 4.7 billion. In recent years, reviews on quality of products are very poor. Snapdeal valuation 2021 is about more than $800 million. And, the total funding in the website is about $1.8 billion as of November 2021.

• Is Snapdeal profitable???

Snapdeal has made profit within 2018 and achieved its profit goal. But after that it has been around 3 years that it has made no such profit. The reason behind its low profit may be due to low revenue compared to that of investments. As of previous records, snapdeal profit 2020 has increased due increment in revenue in the financial year 2019-2020. In 2020, the revenue of snapdeal rose from Rs.839.4 crore to 846.4 crore which is a huge difference which provided the company a large amount of profit.

The loss made by Snapdeal grow up to 47% in the financial year 2020 which is from Rs 186 crore to Rs. 274 crores. In this current pandemic situation, the number of sellers increased is about 20,000 and at present 5,00,000 sellers are working under snapdeal. And nearly, six million users.