In a bid to survive in the cut throat battle, Indian E-commerce giant Snapdeal today made a $20 million investment in logistics and delivery services venture GoJavas, that would eventually strengthen its supply chain and logistics.
This is the second round of investment that Snapdeal has made in gojavas ever since the two parties joined hands in a strategic partnership. Snapdeal claims that over the last 6 months, delivery time on an average has been reduced by 24 hours.
Snapdeal Co-founder and Chief Operating Officer Rohit Bansal said in a company issued press release –
With the freshly infused funds, our aim is to help GoJavas become more successful and further expand their reach. Our teams will continue to work together closely in the future as well.
Snapdeal has been making numerous attempts and investments to improve on its delivery time and achieve last mile connectivity. It bought a minority stake in Gojavas in March this year. Over the last six months, Snapdeal has made an investment of $100 million with the same objective and plans to invest $200 million more in coming 12 months.
Unlike other giants in the market, Snapdeal doesn’t have a logistic and delivery department of its own and relies on third party solutions to deliver products to consumers.
Gojavas has equally benefited from this strategic partnership and has managed to expand its reach to 350 cities, up from 150 cities before the partnership. Gojavas delivers over 1.8 lakh packages every day and posted revenues of over Rs 200 crore in 2014-15 fiscal year.