Jasper Infotech Pvt Ltd owned Snapdeal has made an investment of $20 million (Rs 131 crore) more in logistics firm QuickDel Logistics Pvt Ltd, which operates under the GoJavas brand.
In March 2015, Snapdeal had entered into a strategic partnership with GoJavas. It was also speculated that the company is looking out to buy a small stake in the logistics firm for a deal amount of Rs 150-200 crore.
Rohit Bansal, co-founder of Snapdeal said, “The company’s average timeline for delivering Snapdeal orders has reduced by a full 24 hours in the last six months and our teams have worked closely to come up with innovative solutions that are enhancing customers’ shopping experience on Snapdeal. With the freshly infused funds, our aim is to help gojavas become more successful and expand their reach.”
The eCommerce company has invested a total amount of $100 million in the last six months to improve its delivery timelines by 70%. It has plans to further invest $200 million in the next 12 months 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 with a revenue run rate of Rs 500 crore currently, as reported by TechCircle.
Recently, 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 a lot of 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 $500000 from Kae Capital. In August 2015, LetsTransport, a ‘last mile’ techno-logistics solution provider raised $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.Category Ecommerce Investments