Losses, however, widened four-fold to Rs 510 crore as expenses such as employee benefits, and advertisements increased.
Total expenses grew 68% to Rs 1,070 crore from Rs 636 crore in FY21 as employee benefit expenses grew 76% to Rs 284 crore from Rs 161 crore, and advertisement and promotional expenses rose 82% to Rs 321 crore, up from Rs 176 crore.
The muted revenue growth comes amid a delay in its plan for a public market listing due to a global tech stock rout over macroeconomic headwinds.
Snapdeal was reportedly looking to raise $152 million at a valuation of about $1 billion.
Founded in 2010 by Kunal Bahl and Rohit Bansal, the company was an early competitor to Walmart-backed Flipkart and Amazon. In 2016, it was valued at $6.5 billion, but as competition intensified, Snapdeal went down the pecking order.
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The company now focuses on selling goods to value-conscious users, like Bengaluru-based social commerce firm Meesho.
ET reported on January 3 that
Meesho’s revenue jumped more than four-fold to Rs 3,232 crore in FY22 from Rs 792 crore in FY21, even as losses widened 7.5x to Rs 3,247 crore.
Meanwhile, Flipkart’s marketplace arm, Flipkart Internet, posted a 33% rise in operating revenue in fiscal year 2022.
Despite inflationary pressure, India’s e-commerce industry recorded a 36.8% year-on-year growth in 2022 although more shoppers returned to the physical stores as Covid-19 fears receded, according to ecommerce enabler Unicommerce.
Tier-3 markets like Udaipur, Roorkee and Rohtak grew by 64.7% in 2022 year on year, while tier-2 markets like Bhopal, Amritsar and Bhubaneshwar clocked an impressive 50.9% growth.
Snapdeal in November appointed Himanshu Chakrawarti as CEO of the Snapdeal marketplace. Chakrawarti had joined Snapdeal last year as president of the Snapdeal marketplace.
The company is backed by some prominent investors like SoftBank and Sequoia Capital.
