Ever since GoJavas came into the Twitter controversy with Jabong, nothing has been going right for it. First, it apparently backed out of an almost-completed acquisition deal with Snapdeal, and then it temporarily suspended its operations, followed by reports of a complete overhaul of the organisation.
There’s more news now. A Mint report suggests that it is taking with Delhi-based courier service provider Pigeon Express for a possible acquisition.
The report cited two people familiar with the development for information. It said that GoJavas was talking with two Delhi-based courier companies namely Pigeon Express and Trackon Couriers. However, it is Pigeon Express which is more likely to finally acquire the e-commerce logistics firm.
GoJavas had talks with a couple of companies other than Snapdeal, Pigeon Express and Trackon Couriers. But Pigeon Express has been moving faster and GoJavas is likely to be bought by them,
said one of the two people mentioned above.
These people also revealed that one of the directors of Pigeon Express, Anand Rai, has already taken over the general management of GoJavas. Pigeon Express is a regular courier company and competes with the likes of DTDC, Bluedart, etc.
It was founded in 2004 and reportedly has 135 delivery centres all over India. It handles nearly 1.2 lakh deliveries and pickups every day involving parcels, bulk packets, and other consignments.
Reportedly, GoJavas has laid off at least 1500 delivery professionals and delivery hub executives. It has also asked some of its senior management employees at corporate headquarter to leave the company. Notably, the firm lost a major portion of its business after Snapdeal and Jabong cut ties with it. Jabong and Snapdeal apparently constituted almost 80% business of GoJavas.
Snapdeal , which also has a 42% stake in the company, now relies heavily on its in-house logistics company Vulcan Express. As per various reports, Snapdeal was not happy with GoJavas walking out of acquisition deal at the last moment. Another blow to it came in the form of Flipkart’s acquisition of Jabong.
Meanwhile, GoJavas has not yet resumed its operations and going by these latest reports, it looks like the firm will get back only after the final acquisition which would also cause that overhaul in the organisation.