E-commerce major Snapdeal expects to reach operational profitability in the next three years and is investing heavily in building infrastructure to scale up its business, according to an agency report.
At an International Chambers of Commerce event in New Delhi recently, Snapdeal CEO Kunal Bahl said he was confident that the company will be at the point of profitability in the next three years. Bahl said that there are large infrastructure gaps, which the company and other players in industry are trying to bridge with investments.E-commerce major Snapdeal expects to reach operational profitability in the next three years and is investing heavily in building infrastructure to #
He pointed out that even global e-commerce giant Alibaba was also not profitable for many years and last year they generated EBIDTA (operational profit) of $5-6 billion.
Bahl said that once profitability starts in e-commerce businesses then they tend to become very profitable. But until then, they must be nursed carefully or they would disintegrate. He said that while building capacity, e-commerce segment is generating lot of jobs and also leading to optimum utilisation of existing infrastructure. (SH)
Fibre2Fashion News Desk – India
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