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Snapdeal Follows Amazon Logistics Investment Route

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According to a cofounder of India’s largest online marketplace, Snapdeal, the company will invest heavily into logistics and technology in order to compete with Amazon’s Indian unit and Flipkart.

As Reuters reported yesterday (Dec. 28), eCommerce firms in India are facing a tougher competitive landscape, as online shopping is increasing in popularity and the proliferation of cheaper smartphones continues.

A recent report from Bank of America Merrill Lynch found that India’s eCommerce market is expected to reach $220 billion in the value of goods sold by 2025, a significant boost from the expected $11 billion this year.

Snapdeal Cofounder Rohit Bansal told Reuters that the company will focus on bringing down its delivery times by investing in improved data analytics and demand forecasting.

“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,” Bansal explained. “With all these investments, we have been able to reduce our delivery times by 70 percent in the last one year.”

The company recently spent nearly $35 million to purchase a 50 percent stake in GoJavas, a logistics services company.

“Our view is that in five years from today, 10 percent of India’s consumption will happen online, not just products but all consumption, and we want to build a technology ecosystem for that,” Bansal explained to Reuters.

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