One of the fastest growing Indian online marketplaces, Snapdeal, is now going to invest more in the logistics and technology backed by Alibaba, SoftBank, Foxconn raised more than $500 million in a recent funding round from and will spend more to cut down the delivery times of the orders, in order to take on India’s biggest online marketplaces – Flipkart and Amazon.
Online shopping is becoming more popular in India due to the increasing use of cheaper smartphones and e-commerce firms are struggling to manage with the growing demand and make faster deliveries in different parts of the country. So, Snapdeal now decided to focus on reducing delivery times by investing in data analytics and predictions, co-founder Rohit Bansal earlier told Reuters.
Cheap and Quick delivery is important to be able to win over customers in a competitive industry in which companies are burning through substantial cash 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% stake in logistics services company GoJavas. “Snapdeal had received interest in part of its stake in FreeCharge to raise funds for the mobile wallet company, but declined to comment further,” Rohit Bansal said.
According to a report, the e-commerce market in India is expected to grow to $220 billion by 2025, up from an expected $11 billion this year. Snapdeal had $4.5 billion in Gross Merchandise Volumes (GMV).
Snapdeal was founded in 2010 by Kunal Bahl and Rohit Bansal. It has raised $1.54 billion in around 10 funding rounds from 19 investors, backed by Alibaba, SoftBank, Foxconn, Bessemer Venture Partners, Intel Capital, Ratan Tata, among others.