Snapdeal delivery
A worker of Indian e-commerce company makes a call to a customer before delivering a packet in Ahmedabad, India, 17 April 2015. [Representational Image]Reuters

Snapdeal is all set to invest in logistics to enhance deliveries. The company, which is backed by Japan's SoftBank Group Corp, will spend more on logistics to compete with Flipkart and Amazon's Indian units, said the company's co-founder Rohit Bansal.

Availability of cheap smartphones and boom in the e-commerce industry has resulted in an ever-increasing demand for faster service deliveries. Online shopping is becoming a popular trend in the Indian subcontinent.

"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. With all these investments, we have been able to reduce our delivery times by 70% in the last one year," Bansal told Reuters.

One of the biggest challenges faced by the e-commerce industry is quick and efficient delivery systems. So far, Flipkart claims to be the most efficient company when it comes to delivery services.

The Indian e-commerce sector is expected to grow exponentially to $220 billion in the value of goods sold by 2025, Bank of America Merill Lynch was quoted in a Reuters report as saying.

Snapdeal is planning to expand its services further. Reportedly, it has spent $35 million to buy about 50% stake in GoJavas, a logistics service company.

"With the rapidly increasing assortment and customers logging in from faraway areas, we are further strengthening our logistics to be able to cater to specific needs of our customers around the country. With the launch of Snapdeal in 11 regional languages in January 2016, we anticipate demand to significantly go up from previously untapped regions as well, making investments in logistics significantly important," A Snapdeal spokesperson told IBTimes India via email.

The company has managed to raise $500 million from a funding round led by China's Alibaba, SoftBank and Foxconn in August, according to the Reuters report.

Snapdeal's rival Flipkart has announced the company will tie up with Viacom 18, a media company, to ease licensing for foreign brands, which would make their merchandise available to Indian sellers at a click, a Firstpost report stated.

"Our latest initiative eases licensing process for foreign brands entering India and to offer branded merchandise to consumers at a click of a button," Flipkart said in a statement.