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FabFurnish launches logistics arm FabOne; Operational in 7 cities

Rocket Internet-backed online furniture retailer FabFurnish has launched a shipping solutions provider called FabOne, reports PTI. The report mentions that FabFurnish will be investing $15 million over the next 6-9 months to expand FabOne. FabFurnish co-founder & MD Mehul Aggarwal told the publication that the reasons for launching a logistics arm was to "cut down on delivery cost and to ensure a greater customer experience." It's worth noting that FabFurnish co-founder Vikram Chopra had told Medianama, earlier this year, that 30% of their sales comes from tier 2 & 3 cities and the number is only increasing. Since reach of third-party courier companies is still limited in these centres, the decision to launch an in-house logistics arm seems like the next best alternative. Apparently, the company has already invested $5 million to set up warehouses in Gurgaon, Bengaluru, Mumbai and one other unnamed location. The company has also, apparently, initiated operations in 7 cities, including Delhi, Mumbai and Pune among others. They plan to expand operations to 25 other cities across the country over the next few months, which is expected to include Kolkata, Hyderabad and Chennai. Aggarwal also mentioned that FabOne will eventually be opened up to other e-tailers, but will take some time. Interestingly, Rocket Internet-backed online fashion store Jabong had launched a 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. Last month, e-commerce company Infibeam…

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