Home / Knowledge / News / Textiles / Snapdeal to spend more in logistics to speed up delivery
Snapdeal to spend more in logistics to speed up delivery
30
Dec '15
Backed by Japan's SoftBank Group Corp and others, e-commerce player Snapdeal, will spend more on logistics and technology to better compete with Flipkart and Amazon's Indian unit, its co-founder has said.

With online shopping becoming more popular in India, e-commerce firms are struggling to cope with the growing demand and make faster deliveries in different parts of the country.

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, Bank of America Merrill Lynch said in a recent report.

Flush with $500 million from a funding round in August, led by China's Alibaba, SoftBank and Foxconn , Snapdeal is now looking to expand its services.

Snapdeal will particularly focus on cutting delivery times by investing in better data analytics and demand forecasting, co-founder Rohit Bansal told Reuters.

"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," he said. "With all these investments we have been able to reduce our delivery times by 70 per cent in the last one year."

Quick and cheap delivery is important to be able to win over customers in a competitive industry in which companies are burning huge amount of money to 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 per cent stake in logistics services company GoJavas.

"Our view is that in five years from today 10 per cent of India's consumption will happen online, not just products, but all consumption, and we want to build a technology ecosystem for that," Bansal said. (SH)

Fibre2Fashion News Desk - India

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search