Snapdeal on July 16 reported a sharp decline in its losses at Rs 186 crore for the financial year ending March 2019 against a Rs 611 crore loss reported during the previous financial year.
Led by its focus on high margin products, the company's consolidated revenue also increased by 73 percent to Rs 925 crore during the period under review, as against Rs 535 crore earned in the previous fiscal.
The revenue from operations grew 87 percent in FY 2019. The company reported Rs 436 crore of revenue from operations in FY 2018.
Snapdeal also claimed 2.2x and 2.3x growth in its transacting customer base and traffic respectively. The company now counts 70 million unique users per month.
"Our strategy is to focus on the needs of the value-conscious buyers in India – they constitute the bulk of our users. They are also the fastest-growing mega segment in Indian e-commerce and will be nearly 400 million strong over the next few years," Kunal Bahl, co-founder and chief executive officer of Snapdeal said in a blog.
According to Bahl, the next wave of growth is expected to come from these 400 million buyers.
"The first 100 million online buyers have been largely homogenous - fluent in english, relatively high-income, mostly metro buyers, voracious internet users with high brand awareness and having the disposable income to make discretionary purchases when tempted by discounts on branded products," said Bahl.
"The next 400 million online buyers are far more diverse in terms of their aspirations, where they live, the media they consume, languages spoken, frequency of online purchases and levels of disposable incomes. Serving them requires a different kind of philosophy, which is built around their needs and not only around the world built by brands," he added.
Taking a dig at the rivals, he also said that the company uses machine learning and artificial intelligence to identify emerging trends and gaps in the product-pricing mix to guide sellers, instead of promoting the company's own private label brands or favorably position proxy sellers.Walmart-owned Flipkart as well as global rival Amazon have multiple private label brands across categories such as grocery, fashion, home appliances, among others.