Snapdeal: E-Commerce Company to Invest More in Logistics and Technology, Official Says:
Indian on-line market Snapdeal will spend more on technology and logistics to compete with Flipkart and Amazon’s Indian unit, its cofounder said on Monday.
Shopping on the internet is gaining popularity in India due to the increasing use of smartphones that are more affordable and ecommerce companies are fighting to contend together with the growing demand and make deliveries that are quicker in distinct portions of the state.
The ecommerce market in India is anticipated to grow in the worth of products sold by 2025, up from an estimated $11 billion this year to $220 billion, Bank of America Merrill Lynch said in a recent report.
Flush with $500 million from a financing round in August, directed by China’s Alibaba, Foxconn and SoftBank, Snapdeal is currently looking to expand its services.
Is to cut delivery times by investing in better information analytics and demand forecasting, cofounder Rohit Bansal told Reuters.
“We’ve done over 10 purchases and investments in the past one year, nearly all of them in the area of technology or supply chain and payments,” he said. “With each one of these investments we’ve really been able to cut back our delivery times by 70% in the past one year.”
Economical delivery and fast is significant in order to win customers in a competitive business in which firms are burning through significant money to grow over.
It’s also spent around $35 million to purchase about 50% position in logistics services business GoJavas.
Bansal said that Snapdeal had received interest in FreeCharge in portion of its own position to raise capital for the cellular wallet business, but declined to comment.