India: Snapdeal invests $20m in GoJavas to strengthen supply chain

In March, Snapdeal bought a 20% stake in the logistics provider for Rs.120 crore. Visual from Snapdeal website.

E-commerce platform Snapdeal, owned by Jasper Infotech Pvt. Ltd, said on Wednesday that the company had invested $20 million in logistics firm GoJavas to further strengthen its supply chain.

The company, which has already invested close to $100 million in last six months in improving its last mile services, will further invest $200 million in the next 12 months.

On Friday, Mint reported that Snapdeal had infused Rs.117 crore of fresh capital and an undisclosed amount by doing a secondary stake sale into GoJavas, making the online marketplace the single largest shareholder in the company with a 42% stake.

In March, Snapdeal bought a 20% stake in the logistics provider for Rs.120 crore.

“Our partnership with Gojavas has been tremendously successful. Gojavas is one of our best performing last mile logistics partners. 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 highly innovative solutions that are further enhancing customers’ shopping experience on Snapdeal. With the freshly infused funds, our aim is to help gojavas become more successful and further expand their reach. Our teams will continue to work together closely in the future as well,” said Rohit Bansal, co-founder, Snapdeal.

GoJavas now delivers to 350 cities up from 150 cities pre-partnership, according to the company.

The current deal values GoJavas at Rs.600 crore, the same price at which the last fund raising was done nearly six months ago, signaling that the days of eye-popping valuations for India’s e-commerce start-ups may be nearing an end.

The money raised in the current round will be used towards working capital and business development, Mint had reported earlier.

Also Read: Jabong in talks with Snapdeal for stake sale

Snapdeal acquires US based advertising company

This article was first published on Livemint.com

(With inputs from PTI)

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.