Unboxing Value Beyond Metros

In its new avatar as a value-lifestyle marketplace, Snapdeal is focusing on steadily appeasing the non-metro consumers with UI enhancements, assortment expansion and multi-lingual features

E -commerce platform Snapdeal is likely to see a "fairly good" year ahead, given the strength of the Indian economy and uptick of demand in various categories as well as traction from semi-urban locations, Snapdeal CEO Himanshu Chakrawarti told media. Highlighting the expansion plans, he said the brand is currently looking at ways to reach out to more people in the hinterlands, and to encourage them to buy online.

Launched in 2010, Snapdeal is estimated to be valued at $4 billion and is expected to see growth at 26% Compound Annual Growth Rate (CAGR) and reach $40 billion by 2030. Catering to the value price segment, Snapdeal offers merchandise in categories like home, fashion, beauty, and personal care. More than 90% of the products on the platform are priced under ₹1,000 and more than 86% of the orders are from outside metro cities. Over the last several years, the company has enhanced its expertise in catering to mid-income users who have a budget-led approach to spending and access the Internet primarily through their mobile phones.

Snapdeal saw its consolidated loss after tax narrow to ₹282.2 crore in the financial year (FY)2023, from ₹510 crore in the previous year, according to a statutory filing. The loss reduction measures also led to revenue decreasing to ₹388 crore in FY2022-23 from ₹564 crore in FY 2021-22, it added.

"The focus on profitability and long-term sustainability of the business yielded results with adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) loss reducing to ₹144 crore in FY2022-23, from ₹419 crore in FY2021-22. In the past fiscal year, the company continued its well-defined focus on the value segment, coupled with a steadfast commitment to staying on the path towards reaching profitability," the filing said.