Snapdeal invests USD 20 mln into logistics firm GoJavas
12.10.2015 376 views
, an ecommerce retailer, has made an investment of USD 20 million (Rs 131 crore) in logistics firm QuickDel Logistics Pvt Ltd, which operates under the GoJavas brand.
In March 2015, Snapdeal entered into a strategic partnership with GoJavas, iamwire.com reports. It was also speculated that the company is looking out to buy a small stake in the logistics firm. The ecommerce company has invested a total amount of USD 100 million in the last six months to improve its delivery timelines by 70%. It has plans to further invest USD 200 million by the end of 2016 so as to strengthen its supply chain.
Vijay Ghadge, COO at gojavas, said the partnership with Snapdeal has helped the company become an independent logistics players in the country. In September, 2015, Flipkart bought back its logistics arm from WS Retail Services Pvt. Ltd to simplify its business structure ahead of an initial public offering that the company is looking forward to in the coming time. The company did not disclose the deal amount.
Logistics startups lately have been gaining investors interest. Whether ecommerce companies make profit or not, the supporting logistics sector is sure to grow with time. In April 2015, Mumbai-based logistics startup The Porter closed a funding of under USD 500000 from Kae Capital. In August 2015, LetsTransport, a ‘last mile’ techno-logistics solution provider raised USD 1.3 million led by Japanese venture capital firm Rebright Partners. Multiple startups in last mile delivery space are also catching up with the growth of O2O as a business vertical.
Source: The Paypers