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Snapdeal Plans to Expand on Logistics in Next One Year

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Published on : Mar 17, 2015

The major market dealer Snapdeal has invested around $ 150-200 million in India. It plans to expand in the next one year on its delivery operations as the fierce competition in Indian eCommerce market is booming. 

The firm also increased a minority stake from GoJavas logistics firm, which is the arm of the rival Jabong in the country. 

The strong delivery capacity is utmost important. In the next two to three years, the company is looking for 10X growth rate. It will be delivering around 80-100 million packages in a month. The investment made is on logistics, added the co-founder and COO of Snapdeal. The firm has also acquired minority stake in the GoJavas logistics. He refused to comment on the interest of the stake though. 

Snapdeal still does not have a delivery arm and depends on third-party logistics. It plans to continue to work as an independent company with existing clients. It will work on differentiated products and look out for delivering in four hours time after the order is placed. 

Timeliness of delivery and cost and optimum service is the key to business. 

Snapdeal currently has more than 25 million registered users and more than 50,000 business sellers on the platform. It has raised around $627 million from SoftBank, Japan too. 

Moreover, it has also invested in fulfillment centers to deliver easy operations. Snapdeal has around 50 centers in 20 cities in India. It also further plans to reach 75 in 30 cities in the next few months.  

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