Taiwanese contract manufacturing company Foxconn has agreed to invest about Rs 460 crore ($70 million) in refurbished goods retailer Greendust that is owned and operated by Delhi-based Reverse Logistics Co., as reported by ET tech. This deal comes close on the heels of the deal that was inked between Foxconn and Snapdeal a few weeks ago.
Reverse logistics refurbishes damaged or defective electronic products and sells them on the Greendust portal as well as through offline stores. The company has also partnered with eBay India for selling its refurbished goods, specifically in the smaller markets across the country. Its clientele in India includes Samsung, Amazon.com, LG and Philips.
Hitendra Chaturvedi, founder and chief executive of Reverse Logistics, confirmed the talks, but said the deal was yet to be finalised. At a conference in New Delhi last month, Foxconn chairman Terry Gou too had disclosed that the deal with Greendust was almost final.
Reserve Logistics was founded in 2008 by Chaturvedi, a computer engineer from IIT Roorkee and an MS and MBA from the US. Before starting GreenDust, he was the business unit head for Microsoft’s OEM business in India and has over 20 years of experience in software/IT, multi-channel retail, and supply chain solutions.
For Foxconn, this deal is imperative as it’s betting big on India’s start-up ecosystem. The company, famous for making parts for Apple, has decided to invest a whopping $5 billion in India with a view to profit from the world’s fastest expanding market of smartphones. It is also looking to manufacture products beyond smartphones such as televisions, routers, switches, storage equipment and batteries among other devices.in India.