Snapdeal focuses on unit economics

MUMBAI: Unit economics, an euphemism for profit, has taken front seat for e-commerce major Snapdeal in its new, leaner avatar, founders of the company said on Tuesday.

The Delhi-headquartered company was in close competition with south-based Flipkart at the peak of what was aggressive play by both companies for a larger wallet share of customers, where size is what mattered. It eventually ceded space to the deep pocketed American e-tailer Amazon.

All the e-commerce players had deployed the “cash burn” model to acquire market share, helped by venture investors’ money. According to reports, Flipkart used to burn $150 million a month at its peak before its acquisition by Walmart.