Indian e-commerce company Snapdeal posted loss of Rs 4,647 crore for the fiscal ending March 2017, impacted by a provision for “impairment of goodwill” of Rs 1,797 crore, PTI reported.
Jasper Infotech, which runs Snapdeal, registered a net loss of Rs 3,340 crore in 2015-16, according to regulatory filing to the corporate affairs ministry.
The company’s total income declined 12.6 percent to Rs 1,291.3 crore in FY2017 from Rs 1,478.2 crore in the previous year.
Snapdeal spokesperson said the financial statement for the year 2016-17 reflects the first stage of Snapdeal’s focus on unit economics and business efficiencies.
Snapdeal said it reduced fulfilment cost by more than 20 percent as a percentage of operating revenue and cut operational losses by nearly 25 percent excluding non-recurring cost on account of impairment of assets).
Snapdeal has seen its business being impacted severely by the intense competition in the e-commerce segment. While players, including the likes of Amazon and Flipkart, have pumped in billions of dollars in investments, they continue to operate in losses.
Last year, Snapdeal dumped the $950 million offer from Flipkart with Snapdeal founders Kunal Bahl and Rohit Bansal saying the company will pursue a fresh strategy in the Indian online sales market.
Last year, Snapdeal sold its payment services business Freecharge to Axis Bank for Rs 385 crore, almost 90 percent lower than what it had paid for the firm in 2015.
In January this year, Kishore Biyani’s Future Supply Chain Solutions acquired Vulcan Express, its logistics arm, for Rs 35 crore in cash.
Snapdeal has also significantly reduced its headcount to control costs.