Snapdeal is planning to fully buy GoJavas, its primary delivery partner,to step up its delivery system and supply chain. It already holds a significant minority stake in GoJavas.
It is yet unclear how much Snapdeal is willing to pay for GoJavas.
Founder Vijay Ghadge quit the company four months ago and joined logistics firm, Vulcan Express earlier this month. Snapdeal is likely to execute the acquisition through Vulcan Express.
The acquisition would aid Snapdeal to try and claw back the market share it has lost to Amazon India over the past six months, by strengthening its supply chain infrastructure and ensuring faster deliveries to consumers.
Snapdeal, last year, bought 42 per cent stake in GoJavas, which was valued at Rs 250 crore at that time.
Sources told ET that 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,” the second source told.
In Feb this year, GoJavas delivered to nearly 300 towns and cities and set a target of increasing the number to 600-800 towns and cities in next one and a half years.
GoJavas, which was built as a logistics arm of Rocket Internetbacked fashion retailer, was spun off as a separate third-party logistics player in 2013. It continues to be the largest logistics partner for Snapdeal and close to 85% of GoJavas’ current shipment volumes come from Snapdeal and Jabong.
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