Snapdeal to acquire GoJavas for fast delivery

Snapdeal to acquire GoJavas for fast delivery

Bengaluru: Snapdeal is planning to acquire logistics firm, GoJavas, for fast delivery. GoJavas is Snapdeal’s primary delivery partner with a minor stake. Snapdeal, which lost its number two position to Amazon India recently, is doing everything it can to regain the market share. Presently, Snapdeal holds a minority yet significant stake in GoJavas.

As per reports from sources, Snapdeal will likely execute the acquisition through Vulcan Express, its end-to-end logistics unit. Go-Javas has been struggling to raise a fresh round of capital, and an acquisition by Snapdeal will be a win-win for both entities.

“Snapdeal is dependent on GoJavas as its efficiencies had improved after working with them. Vulcan absorbing GoJavas is a close possibility as the marketplace had invested in the team that built Go-Javas, with Ghadge joining the latter.”

Manish Saigal, managing director at Alvarez and Marsal in India, told “Ecommerce marketplaces are currently focused on improving their unit metrics and hence might be careful in considering investment in logistics companies.”