E-commerce major Snapdeal has announced that it has invested $ 20 million in gojavas, one of India’s leading third party logistics player. This is the second round of investment made by Snapdeal in the company. Snapdeal had entered into a strategic partnership with gojavas and made its first investment in the firm earlier this year in March 2015.
The investment in gojavas is in line with Snapdeal and gojavas’s strategic partnership signed earlier this year to build capacities for the future and strengthen the supply chain ecosystem, it said in a press release.
Snapdeal said it has been working consistently for the last 8-10 months to strengthen its supply chain and logistics. The company has invested $ 100 million in the last 6 months to improve it delivery timelines by 70 per cent. It will invest an additional $ 200 million in the next 12 months to further strengthen its supply chain.
The partnership between Snapdeal and gojavas has proved to be mutually beneficial. The companies have worked together to build capacity and expand reach. gojavas’ reach expanded to include 150 more cities within 100 days of having entered into a partnership with Snapdeal. gojavas currently delivers to 350 cities up from 150 cities pre-partnership. Further, the teams have worked together to come up with innovative last mile solutions like card-on-delivery, 90 minute reverse pick up and 4-hour delivery services and have set new benchmarks in the industry in supply chain and logistics.
Snapdeal co-founder Rohit Bansal said, “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 6 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.”
Explaining the rationale and the benefits of this partnership, Vijay Ghadge COO, gojavas said, “Our strategic partnership with Snapdeal has helped us become one the largest independent logistics players in the country with current revenue run rate of Rs 500 cr, while keeping our operations sustainable and efficient because of the higher visibility of future sales and targeted cities for expansion. We were able to speed up our innovation pipeline because of assured support for new products like the 90 minutes reverse pickup as well as open box delivery for electronic products.” (SH)