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Snapdeal infuses Rs 117 crore fresh capital into GoJavas

  • Jasper Infotech-owned
    Snapdeal has infused Rs 117 crore of fresh capital into logistics firm GoJavas,
    making the online marketplace portal the single largest shareholder in the
    company, reported the
    Mint.
    • Jasper Infotech-owned
      Snapdeal has infused Rs 117 crore of fresh capital into logistics firm GoJavas,
      making the online marketplace portal the single largest shareholder in the
      company, reported the
      Mint.
    •  

    •  
    • Snapdeal, which in
      March bought a 20% stake in GoJavas for Rs 120 crore, will now hold 42% of the
      logistics firm.
    •  
    • The money raised in
      the current round will be used towards working capital and business development.
    •  
    • Snapdeal picked up a
      stake in GoJavas in March as part of a strategic agreement to ensure it has a
      long-term partner for last-mile delivery that will help build capacity for the
      future. Snapdeal founders at that moment had denied any plans of an eventual
      buyout of GoJavas.
    •  
    • Most large e-commerce
      companies such as Flipkart, Myntra and Amazon have their own last-mile
      logistics support in order to wield better control over the delivery time and
      experience. Snapdeal had so far stayed away from putting in place its own
      in-house logistics and currently works with multiple third-party delivery
      companies, including Blue Dart and Ecom Express.
    •  
    • However, the
      increasing control over GoJavas seems to indicate that Snapdeal is trying to
      build its version of ekart, which is Flipkart’s logistics support.
    •  
    • Founded in 2013,
      GoJavas counts online retailers such as Jabong, Fabfurnish, Yepme, Lenskart and
      Healthkart as clients. GoJavas has more than 100,000 square feet warehouses
      under its management, and offers its services across 300 cities and towns in
      2,900-plus postal districts.
    •  
    • Some of the large
      shareholders in GoJavas include Ashish Choudhary, Randhir Singh and Jabong
      co-founder Praveen Sinha.
    •  
    • Earlier this week, the
      Gurgaon-based Snapdeal bought a minority stake in hyperlocal grocery delivery
      firm PepperTap for an undisclosed amount, as part of its latest push into the hyperlocal
      segment.

     

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