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Ecommerce player Snapdeal has invested $20 million in logistics firm GoJavas to further enhance its supply chain and logistics. GoJavas will use the funds to add 100 more cities to its repertoire in the next 6-12 months. Snapdeal had picked up a minority stake in the company for an undisclosed amount in March this year.

According to Snapdeal, GoJavas has been one of its ‘best performing’ last mile logistics partners, reducing Snapdeal’s delivery time by 24 hours in the last 6 months. Snapdeal says that it has invested $100 million in the last 6 months to improve delivery timelines by 70%, while looking to invest another $200 million in the next 12 months to strengthen its supply chain.

GoJavas currently claims to have a revenue run rate of Rs 500 crore, and added support for new products like a 90 minutes reverse pickup and open box delivery of electronic products, through the partnership. The partnership let GoJavas deliver to 150 more cities within 3 months, and currently services 350 cities. In June, GoJavas started offering delivery services to local businesses such as groceries, pharmacists, and supermarkets among others, piloting in 15 cities across India.

GoJavas began as Rocket Internet-backed online fashion store Jabong’s  third-party logistics service called JaVAS (Jabong Value Added Services) in December 2012. However, it was later sold to Gurgaon-based QuickDel Logistics in February last year and rebranded to Gojavas. Jabong is currently listed as a client of Gojavas, along with Paytm, HealthKart, Hindustan Unilever, LensKart, YepMe, Juvalia&You, Avon, Forever21 and Provogue. It states that 400 companies use its service in over 3,000 pincodes and it delivers 180,000 packages every day.

In May last year, Snapdeal stated that it had opened over 40 fulfillment centers across 15 cities that would take care of warehousing, logistics and liaison with courier companies. Following this, it had extended its same day delivery service ‘Snapdeal Plus’ to sellers in 15 cities across India. Snapdeal had launched a fulfillment service for sellers called SafeShip listing their products on its platform in June 2013.

Competition:

– In September last year, e-commerce logistics services provider Delhivery raised $35 million in Series C round of funding led by Multiples Alternate Asset Management, with participation from existing investors Times Internet and Nexus Venture Partners. Times Internet had bought a minority stake in the company for an undisclosed amount in June 2012.

– In February, Flipkart opened up its logistics arm eKart Logistics to other operators. eKart was originally created to serve WS Retail, Flipkart’s B2C side. Flipkart launched its own fulfillment service for third party merchants called ‘Flipkart Advantage’ in September last year, which made products eligible for faster delivery options like Flipkart’s same day delivery and next-day delivery. This was after the company had opened its logistics arm eKart Logistics to other operators in February the same year.

– Kartrocket had also opened its shipping solution Shiprocket to all e-tailers in India, back in December last year.

– In March, Amazon extended the services of Amazon Transportation Services Private Limited (ATSL) to deliver products from sellers who transact on Amazon directly to customers in India. ATSL would be available to merchants as one of their logistics partners for Amazon’s Indian marketplace. In April last year, Amazon India piloted an in-store pick up service in Bangalore for products ordered from its site, in partnership with local kirana (grocery) stores in the city. That was an expansion from Mumbai and Delhi where Amazon had tied up with BPCL to test in-store pick up service.

– In the same month, Rocket Internet-backed online furniture retailer FabFurnish launched a shipping solutions provider called FabOne, and will be investing $15 million over the next 6-9 months to expand FabOne.

– Infibeam launched a SaaS-based logistics services aggregation platform called ShipDroid, which will help merchants deliver packages throughout the country.

– In September last year, e-commerce logistics company Ecom Express raised Rs 100 crore in funds from Peepul Capital. The company said that it would use the funds to grow its distribution capabilities to reach over 800 locations over the next two years and employ around 10,000 employees in the next five.

Image Credit: Wikipedia user Kristoferb