Snap’s profit from India ops more than doubles in FY22

The company, which operates messaging app Snapchat, doubled its revenue to Rs 66 crore from Rs 33 crore in FY21, according to the company’s data sourced by Tofler.

Expenses for the fiscal jumped 98% from the previous year to Rs 57.4 crore. Employee benefit expenses increased by 71% to Rs 34.2 crore.

Snap India declined to comment on the financials.

In April 2022, Snap co-founder Evan Spiegel called India a big success story for the company. “Certainly, India has been a great success story for us. But that’s been a big focus of ours, and we have now really organised our teams in our processes around scaling that growth around the world,” Spiegel had told analysts in the US during the Q1 2022 earnings conference call.

With an estimated 150 million users in India, Snapchat derives a big chunk of its revenue from advertisements, say market sources. As of October 31, 2021, Snapchat had 100 million users in India.

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Snap has appointed former Meta India head Ajit Mohan as president of its Asia Pacific operations. It has appointed ad-tech companies Tyroo and Httpool as official advertisement sales partners in India.It has also launched a subscription-based service Snapchat+ in India. However, the platform’s subscription revenue in the country is negligible.

In India, Snapchat competes with Google, Facebook, Twitter, and ShareChat for digital advertising.

According to media agency GroupM, digital accounted for almost 49% of India’s $14.9-billion advertising market.

A report by Dentsu, another media agency, said the Indian advertisement market is poised to expand by 14.7% to reach $12.6 billion in 2023.

The report also said that digital will overtake TV in ad spends in 2023. Digital advertising spends, it said, are projected to grow at 32% in 2023 and attain a 40% share of total advertising spends.