Delhivery, a last mile logistics ecommerce provider in India has acquired doorstep payment network Gharpay, as per a company source. However, the amount of acquisition has not been revealed by either of the companies.
Gharpay was launched in 2011 in Hyderabad by Arpit Mohan and Abhishek Nayak. It had raised seed funding of $300,000 from Sierra Atlantic founder & angel investor Raju Reddy and Sequoia Capital. Later it also raised a round from Blume Ventures with Sequoia and Kae Capital also participating in that round.
Update: On talking with Iamwire, Abhishek Nayak, CEO of Gharpay clarifies that Delhivery has acquired only the cash collection service ‘Gharpay’ which has 750 current clients. Also the latest funding round raised by Gharpay was for a new product, taking the focus of holding company of Gharpay towards technology. The ‘Gharpay’ brand will now be owned by Delhivery.
The holding company of Gharpay will now be focusing on a building payment services, cash on delivery software and management solution Clink, currently in beta and has also attracted investors as above. This hints the overall deal size to be considerably low and not really and exit for the investors.
Gharpay cash collection works on the model of facilitating cash payment for online merchants. That is while shopping online, if a user choose COD option, Gharpay’s executive collects cash or cheque and share the invoice to the customer at their doorstep. Later the delivery is done either by the ecommerce company or a third party logistics service. Gharpay charges a percentage of the transaction as a commission which ranges between 2% – 7% depending on the client.
Whereas, Gurgaon based, Delhivery provides entire supply chain for retailers, from procurement to warehousing, packaging to last mile delivery system. The company previously had also raised investments from Times Internet Ltd against minority stake. It also handles the major portion of Indiatimes shopping drop shipping model.
Delhivery recently claimed to cross more than 20 million shipments with being operational in around 39 cities. It was also previously handling the delivery for FashionandYou, which sources say has now ceased.
Now with the above model of Gharpay, Delhivery aims to sync its services well which are targeted towards the same industry and it can further handle it end-to-end expanding its portfolio.
Also Gharpay’s big clientele list hopes to provide an added advantage for Delhivery.Category Investments News