Snapdeal, the rapidly evolving e-commerce company which has been on an acquisition spree lately, expressed its intentions to maintain that same momentum, as the company is looking forward to become profitable in next 2 years
Indian e-commerce market is becoming a hell lot of battle and every major giant in this field is looking towards growth, which will eventually aid them to survive against competitors. However, Kunal Bahl, CEO and co-founder at Snapdeal said that the company will be hyper active in making profitable acquisition deals as he believes that organic growth takes time. On the sidelines of a Goldman Sachs Group Inc. technology conference in Hong Kong, he said-
Building everything from scratch is a losing proposition. If we want to do everything ourselves, we’ll be too late.
Bahl said that the company will step towards profit once its investments in logistics and technology infrastructure bear fruit. Snapdeal has made 10 acquisitions in last 7 months itself, with MartMobi being the latest one. Snapdeal has raised around 90 percent of its capital in just the past 11 months.
Witnessing this immense growth in Indian e-commerce market, investors from foreign land have been pouring in enough cash. Backed by this cash, Flipkart and Snapdeal have made a number of acquisitions and have been tapping into every possible growth space. Recently, both were joined by Amazon who has made a considerable growth since then and is trying to establish into Indian e-commerce segment.
The growth of online commerce requires heavy discounting initially that in turn pressures profitability. However, as of now, none of India’s e-commerce giants have turned into profitability.
In a recent valuation, Snapdeal was valued at $5 billion whereas Flipkart was valued at $15Billion.