E-commerce player Snapdeal, in a bid to strengthen its supply chain infrastructure, has picked up a minority stake in logistics firm GoJavas, the company confirmed to MediaNama. Snapdeal however did not reveal the size of the investment. A FirstPost report also said that Snapdeal is looking to invest$150-200 million in the logistics space over the next year as it is looking to complete deliveries within four hours.
“We believe that supply chain is the back bone of ecommerce and for ecommerce companies to be successful it is important to develop this ecosystem. We have thus, entered into a strategic partnership with GoJavas to strengthen our supply chain infrastructure for the future. This is a minority investment by Snapdeal,” the company replied in an email.
Snapdeal’s investment in logistics comes at a time when its main competitors are also strengthening their supply chains. Flipkart already has its own logistics arm eKart Logistics to other operators in February last year. The same month, JustDial announced integrating logistics services that would offer its merchants the ability to deliver products purchased via its marketplace.
In April last year Amazon India had started working with kirana stores in Bangalore for in-store pick up of products ordered from its website. The company had launched its third-party logistics service in India in November 2013. It is also interesting to note that Snapdeal had launched a fulfillment service for sellers listing their products on its platform called SafeShip, in June 2013.
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.
Other deals by Snapdeal
Japan’s Softbank had invested $627 million in Snapdeal last year in October and is reportedly in talks with China’s Alibaba for another round of fundraising. Last month, the company announced raising $80 million from San Francisco-based hedge fund Valiant Capital Management and Hong Kong-based hedge fund Tybourne Capital Management, with participation from existing investors. An ET report says that Alibaba may invest up to $1 billion (Rs 6200 crore) in Snapdeal, while Financial Express pegs this at $500-700 million.That said Snapdeal has been fairly busy over the last month and we look at some of their deals:
-Snapdeal is also in talks to buy online recharge and couponing site Freecharge
-Last month, Snapdeal acquired the online luxury fashion store Exclusively.com (formerly Exclusively.in) for an undisclosed amount. Note that Exclusively.in was acquired by rival Myntra in 2012. But it seems that Myntra has sold back its entire stake in the company back to founder Sunjay Guleria in second half of 2013 and the company has been operating independently ever since.
– In December last year, Snapdeal acquired gift recommendation portal Wishpicker.comfor an undisclosed amount. This was Snapdeal’s second acquisition last year. It had previously acquired the Delhi-based fashion & lifestyle product discovery site Doozton, in April.
– In May 2013, Snapdeal had acquired handicraft marketplace Shopo.in for an undisclosed amount. Following this the site was shut down and the products were integrated to Snapdeal. Similarly it had also acquired the online retailer of sports and fitness equipment Esportsbuy.com, in April 2012, which was also shut down two months later. Back in 2010, the company had acquired the group buying site Grabbon.