Snapdeal launches Snapdeal Plus to offer 2-hour delivery
Taking the Indian e-commerce war to the next level, the country's second largest consumer e-commerce company Snapdeal.com has launched a new service called 'Snapdeal Plus', to offer customers delivery of products within two hours of placing an order. To make this a reality, the company has opened 40 fulfilment centres across 15 cities in the country to help its over 30,000 vendors.
"Snapdeal Plus service has been launched by the company as an effort to further enable businesses (especially SMBs) to sell products on the marketplace platform to over 25 million Snapdeal members across 5,000-plus towns and cities in the country. Already 1,000 sellers are a part of this service," the company said in a statement.
The new service is expected to further intensify competition in the Indian e-commerce space, which has seen investors pouring in millions of capital into it. Snapdeal could be hoping to eat into Flipkart's market share with the launch of Snapdeal Plus. Like its peers, Snapdeal is already offering same-day delivery. However, Flipkart is also quite aggressive when it comes to launching new features. A few weeks ago, it had rolled out an annual subscription service, along the lines of Amazon Prime.
Flipkart also recently acquired Myntra.com, one of the leading fashion and accessories e-tailers in India. Together, the companies are looking to capture more than 50 per cent of the total e-commerce market share in the country
Snapdeal was started as a pure online deals site and later it pivoted to a full-fledged horizontal e-commerce company via a marketplace model in September 2011. Last week, the company announced that it had raised $100 million in a fresh round of funding from a group of new investors including US-based BlackRock Financial Management; Singapore's sovereign wealth fund Temasek; Hong Kong-based Myriad Asset Management; and Tybourne Capital Management; besides PremjiInvest, the personal investment vehicle of Wipro chairman Azim Premji.
Last month, the firm had acquired Doozton.com, a curated and socially-nurtured fashion shop that offers hand-picked fashion-finds and seeks to help people make better shopping decisions and discover fitting apparel. This came exactly a year after the firm snapped Shopo.in for an undisclosed amount. In a recent interview with The Hindu Business Line, Kunal Bahl had mentioned that Snapdeal is considering two more acquisitions in the Indian technology space. The company is also targeting a US public float in 12-24 months.