To further enhance its delivery operations in India, Snapdeal is in talks to acquire GoJavas, a logistics solutions startup, for about Rs. 150-200 crore. PTI reports that the company could officially announce the acquisition within two weeks.
GoJavas was founded in 2013 after Jabong sold it off for an undisclosed amount. The startup works with many eCommerce companies including Jabong, HealthKart, Yepme, Lenskart, PayTM, etc. and it claims to cover more than 2,500 pincodes in more than 100 cities in India.
The startup claims to be India’s first logistic company to support the “Try and Buy” delivery concept through which customers can try lifestyle products and buy only if they are satisfied. Other features of the service includes instant cash refund, real-time tracking credit or debit card acceptance on delivery, etc.
Acquiring a new-age logistic solutoons company will be crucial to Snapdeal’s growth ambitions in India. Flipkart already has a separate logistics arm, which has been a big reason for its success over the years. Snapdeal has more than 25 million registered users and more than 50,000 seller registered on its marketplace. But it is still dependent on third-party logistic services for deliveries.
Last year, Snapdeal raised about $1 billion and invested money in setting up fulfillment centers which could help it in solving its logistical needs. The company has set up about 50 fulfillment centers across 20 cities. It is also planning to expand such centers to 30 cities in upcoming months.
Snapdeal founder Kunal Bahl had earlier indicated that the company is looking to acquire more start-ups in the space of mobile technology and supply chain, ranging from less than $1 million to $10 million.
