Snapdeal is planning to completely acquire its online delivery partner GoJavas. It already holds a significant minority stake in GoJavas. The deal amount remains undisclosed.
Founded in 2013 by Vijay Ghadge, GoJavas is an ecommerce logistics supply chain company, which has fulfilled around 10 Mn orders till date. In October 2015, Snapdeal acquired a 42% stake in the startup for about $3 Bn (INR 250 Cr) to strengthen its supply chain ecosystem. It was among the first delivery startups that introduced the concept of Try and Buy.
Founder Vijay Ghadge quit the company four months ago and joined logistics firm, Vulcan Express earlier this month. Snapdeal is likely to execute the acquisition through Vulcan Express.
The acquisition would lend a hand to Snapdeal regain its market share it has lost to Amazon India over the past six months. This step would strengthen its supply chain infrastructure and ensure faster service to buyers.
GoJavas has delivered to about 2,500 pincodes, in 100 towns and cities. The company which was built as a logistics arm of online fashion retailer Jabong, was spun-off as a third party logistics firm in 2013.
Other ecommerce-centred logistics companies include Delhivery, Ecom Express and Blue Dart. Earlier this year, in February, Pune-based ecommerce logistics firm Xpressbees raised about $12.38 Mn (INR 85 Cr) from investors led by SAIF Partners.
The development by followed by ET.
Welcome to Flash Feed, your essential source for breaking news and innovation from around the web – bite-sized and updated all day.
