In a recent investor presentation, Softbank noted that for the period ended March 31, 2016, Snapdeal has increased its GMV by 90%
With four technology-based acquisitions in the last one year — TargetingMantra, Reduce Data, Fashiate and MartMobi Technologies — Snapdeal is now ready to beef up its logistics and delivery system with better demand management.
“We have been working with some partners to start our plug and play logistics system. Some of our partners are enabling it in the initial stages so that they can provide efficient service,” Rajiv Mangla, CTO and head of products at Snapdeal, told FE.
The e-retailer has partnered with some small third party logistics partners in Delhi NCR for the pilot of plug and play. Jayant Sood, chief customer experience officer, recently said that the the e-retailer has warehousing space of about 1.3 billion square feet . The marketplace currently has 63 centres across 25 cities which handle 80% of all deliveries.
“Our delivery partners can use our technology to optimise their operations and manage their workforce,” Mangla explained. He added that once the data is in place, packages can be tracked and predictive analysis can be used to forecast when they will reach the destination. “We can predict the demand reliably and manage inventory,” Mangla pointed out. He added that sales at the company’s warehouses were increasing.
In a recent investor presentation, Softbank noted that for the period ended March 31, 2016, Snapdeal has increased its gross merchandise value by 90%.
Snapdeal reported an estimated GMV of about $2 billion for FY15 and had targetted $8-10 billion for FY16. Other investors at Snapdeal include Alibaba, Foxconn, Temasek, Myriad and Wipro promoter Azim Premji.
In FY15, the Jasper Infotech-backed company reported a five-fold increase in losses to R1,319 crore and revenue to R938 crore, according to the registrar of companies. A study by Novonous shows, third-party logistics market in India is expected to grow to $302 billion by 2020, a CAGR of 12.17%, driven by growth in the manufacturing, retail, FMCG and e-commerce.