Snapdeal in talks to acquire logistics firm GoJavas for Rs 150-200 crore
E-commerce company Snapdeal is reportedly in talks to acquire logistics firm GoJavas in a deal estimated to be about Rs 150-200 crore, as it looks to further strengthen its delivery operations in India.
Business Today reports, citing sources, Snapdeal is expected to announce the acquisition of the former logistics arm of e-tailer Jabong in the next two weeks. GoJavas, which works with e-commerce firms like HealthKart, Jabong, Yepme and Lenskart, covers over 2,500 pincodes in the country.
Snapdeal, which was founded in 2010, has over 25 million registered users and more than 50,000 business sellers. Currently, it does not have a captive delivery arm and relies on third-party logistics.
According to several media reports, Snapdeal, which raised about $1 billion last year, including $627 million from Japan's SoftBank, is eyeing up to five acquisitions in the technology space this year.
Snapdeal Co-Founder Kunal Bahl had indicated that the target companies would be across sizes, ranging from less than $1 million to $100 million.
The company has invested in setting up fulfilment centres to smoothen its delivery operations. At present, the company has 50 such centres across 20 cities and plans to expand this to 75 in 30 cities in the next few months.
Last week, we had reported that Snapdeal is in talks to buy online recharge service provider FreeCharge. It was also reported that the company is in talks with Chinese e-commerce giant Alibaba for a record funding round of $1 billion.