In a race to stay ahead in today’s competing eCommerce environment, online marketplace Snapdeal plans to invest more on its logistics and technology fronts to compete with its immediate rivals Flipkart and Amazon India.
Increasing smartphone usage across the country has made online shopping popular and eCommerce companies are working hard to cope with the growing demand of consumers and make deliveries faster across zones.
As per a report by Bank of America Merrill Lynch, the e-commerce market in India is expected to grow to $220 billion in the value of goods sold by 2025, up from an expected $11 billion this year.
Snapdeal now eyes at expanding its services across the country and has recently nabbed a fund of $500 million. The eCommerce giant will infuse the raised funds into its logistics and technology.
As per Rohit Bansal, Co-Founder, Snapdeal, “One area Snapdeal will focus on is to cut delivery times by investing in better data analytics and demand forecasting.”
"We have done over 10 acquisitions and investments in the last one year, almost all of them in the field of technology or supply chain and payments. With all these investments we have been able to reduce our delivery times by 70 percent in the last one year," he added.
Burning high cash, today eCommerce companies are betting big on a quicker and cheap delivery process to lure customers and grow.
Snapdeal, which had $4.5 billion in Gross Merchandise Volumes (GMV), a measure of value of goods and services sold, by August, bought mobile wallet company FreeCharge in April for around $400 million.
It has also spent around $35 million to buy about 50 percent stake in logistics services company GoJavas.