Snapdeal to Increase Investment in Logistics

Snapdeal’s Co-Founder Rohit Bansal

Snapdeal’s Co-Founder Rohit Bansal (Image Source)

Snapdeal’s Co-Founder Rohit Bansal on Monday announced that their eCommerce company Snapdeal will be spending more on logistics and technology to compete with Amazon and Flipkart.

The change of paradigm in the online shopping sector has given rise to more demands, from a pin to a car, today everything is available online. Due to the increasing demand of a variety of products it becomes hard to deliver the products on time. Softbank backed Snapdeal is targeting the ‘theorem-of-logistics’ in hope of getting a better customer buildup than its competitors in the market.

In a recent report by the Bank of America, Merrill Lynch predicted that the eCommerce market of India will reach $220 billion by 2025 in reference to value of goods. From $11 billion this year the market will go up by 20 times in next ten years.

In a statement Rohit Bansal stated that “One area Snapdeal will focus on is to cut delivery times by investing in better data analytics and demand forecasting.”

Recently Snapdeal was funded by Alibaba, SoftBank and Foxconn with $500 million and this funding will surely be used in the expansion of the company. Snapdeal has already acquired and invested in 10 companies in last one year, almost all of them in the field of tech and payments. Also the company has reduced the delivery time by 70 percent in last one year, Rohit stated.

Starting from ‘’ in 2010 to ‘Reduce data’ in September this year, the company looks on a spree. Companies acquired by Snapdeal include:,, Shopo, Doozton, Wishpicker, Exclusively, RupeePower, FreeCharge, MartMobi Technologies and Reduce Data.

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Why would Flipkart stay behind, it has already acquired six companies: WeRead, Letsbuy, Myntra, Appiterate, FX Mart and MapMyIndia. This year Flipkart invested in Zinca Logistics ($6 million) and Blackbuck ($25 million) showing their presence. Also Snapdeal is just catching up with the pace by investing $20 million in GoJavas. One97 Communications brand’s Paytm has also invested $10 million in Loginext solutions.

The most important thing about consumer facing logistics is that it should be cheap, fast and available just everywhere. Crosshair-ing this idea will help boost eCommerce companies in the market.

  • Varun Arya

    There is no chance of snapdeal, its a cheat deal, They never return money of cancelled goods and their customer service is the most pathetic one….. A big zero to SNAPDEAL…….