E-commerce company Snapdeal has posted a 125% rise in its losses against a 56% rise in its revenues for FY16. Snapdeal lost its second spot in the domestic e-commerce market to Amazon India while Flipkart retained its top spot.
According to a report in The Economic Times, Snapdeal’s losses widened to Rs 2,960 crore in 2015-16, a 125% jump from the Rs 1,319 crore loss posted in FY15.
At the same time, its revenue grew 56% from Rs 933 crore to Rs 1,456.6 crore in FY16.
According to the report, Snapdeal’s total expenses doubled to Rs 4,416.6 crore in FY16 from Rs 2,252.5 crore in FY15.
“In FY16, we invested our capital in building our capabilities across technology, logistics and seller ecosystem to support the long term growth of our business,” a Snapdeal spokesperson was quoted in the report as saying.
Snapdeal acquired six companies last year which included – FreeCharge, GoJavas and TargetingMantra.
In November last year, Snapdeal underwent a branding overhaul in deciding to ‘unbox’ itself and launched a new logo and television campaign which cost it nearly Rs 200 crore.
Source: dnaindia.com