Tuesday, March 17, 2015

INDIA, SNAPDEAL TO ACQUIRE LOGISTICS SERVICE

Amazon has shown the importance of logistics for delivery.

Snapdeal may acquire GoJavas for Rs 200 crore





Snapdeal may acquire GoJavas for Rs 200 crore
According to sources, Snapdeal is expected to announce the acquisition of the former logistics arm of e-tailer Jabong in the next two weeks.
NEW DELHI: Online marketplace major Snapdeal is in talks to acquire logistics firm GoJavas in a deal estimated to be about Rs 150-200 crore, as it looks to further strengthen its delivery operations in the country.

According to sources, Snapdeal is expected to announce the acquisition of the former logistics arm of e-tailer Jabong in the next two weeks.

The deal size could range between Rs 150-200 crore, they added.

When contacted, a Snapdeal spokesperson said: "These are speculations and as a policy, we do not comment on speculations."

GoJavas did not respond to the email query. GoJavas, which works with eCommerce firms like HealthKart, Jabong, Yepme and Lenskart, covers over 2,500 pincodes in the country.

Founded in 2010, Snapdeal has over 25 million registered users and more than 50,000 business sellers. Currently, it does not have a captive delivery arm and relies on third-party logistics.

The City-based e-commerce firm, which raised about $1 billion last year, including $627 million from Japan's SoftBank, has been scouting for acquisitions in mobile technology and supply chain space.

Snapdeal co-founder Kunal Bahl had indicated that the target companies would be across sizes, ranging from less than $1 million (about Rs 62 lakh) to $100 million.

The company has invested in setting up fulfilment centres to smoothen its delivery operations.

Currently, it has 50 such centres across 20 cities and plans to expand this to 75 in 30 cities in the next few months.

Snapdeal counts global e-commerce giant eBay, Temasek, Myriad, Tybourne, Blackrock Inc and Premji Invest among its investors. Tata Sons Chairman Emeritus Ratan Tata also made a personal investment into the company.