SoftBank-backed Snapdeal predicts profits in two years

ECommerce firm Snapdeal expects to turn profitable in the next two years. Its CEO said that the company cuts costs and boosts efficiency in the market, which is dominated by homegrown Flipkart and American giant Amazon.
Kunal Bahl, who cofounded Snapdeal in 2010, told that the online marketplace provider backed by Japan’s SoftBank Group did not immediately need to raise capital unless it makes an acquisition.
The Indian middle class is rapidly uptaking wireless high-speed internet that has prompted buyers to shop online. It is boosting sales at e-tailers and making country’s internet services market one of the world’s fastest growing.
Snapdeal was valued at $6.5 billion after a fund-raising last year. But valuations of Indian e-commerce firms are generally believed to have softened since then. Fidelity Investments has marked down the value of its holding in Flipkart by around 36 percent.
Snapdeal reported a loss of 29.6 billion rupees ($441 million) in the financial year to March 31, 2016, according to regulatory filings, but Bahl said they were steadily improving.
“I see a relatively clear line of sight to (profit) and we’ve been making great progress in that direction also,” Bahl said on Monday.