Pigeon Express in talks to acquire GoJavas3 min read . Updated: 12 Aug 2016, 04:49 AM IST
Besides Pigeon Express, GoJavas had also held talks with Delhi-based Trackon Couriers
Bengaluru/New Delhi: Courier service provider Pigeon Express Pvt. Ltd is in advanced talks to acquire e-commerce focused logistics service provider GoJavas (Quickdel Logistics Pvt. Ltd), which suspended operations last week amid an organisational overhaul, in a cash and stock deal, said two people aware of the development.
GoJavas, which counts Snapdeal (Jasper Infotech Pvt. Ltd) as a key investor, had started scouting for possible suitors after a bid by Snapdeal for a complete buyout fell through. Besides Pigeon Express, the company had also held talks with another Delhi-based courier service provider, Trackon Couriers Pvt. Ltd. However, the deal has swung in favour of Pigeon Express.
“GoJavas had talks with a couple of companies other than Snapdeal, Pigeon Express and Trackon Couriers. But Pigeon Express has been moving faster and GoJavas is likely to be bought by them," said one of the two people cited above, on the condition of anonymity.
Mint could not ascertain the financial details of the deal or whether Snapdeal will sell its stake in the company.
Delhi-headquartered Pigeon Express was founded on 1 September 2004, according to its website. The company handles doorstep pickup and delivery of bulk packets, parcels and other consignments, essentially competing with larger rivals such as DHL, DTDC and Bluedart.
The company claims to handle 1.2 lakh deliveries every day and has 135 delivery centres across the country.
According to documents available with the Registrar of Companies, Pigeon Express has three directors: Anand Rai, Sunita Rai and Maninderjit Singh Chopra.
Mint reported on 8 August, citing an email response from GoJavas, that the company was making changes to its operational model to be more flexible and to provide additional services.
According to two people aware of the development, Anand Rai has taken over the general management at GoJavas.
Anand Rai, Trackon Couriers and GoJavas did not respond to emails seeking comment at the time this report was filed.
Over-dependence on Snapdeal and Jabong for business led to a meltdown at GoJavas, Mint reported on 10 August.
The company’s business volumes dropped drastically after Snapdeal ended ties with GoJavas after talks of an acquisition failed, choosing instead to route deliveries through its in-house logistics arm Vulcan Express and third-party delivery companies. Jabong, another key client of GoJavas, was sold to Flipkart Ltd for $70 million last month, resulting in loss of business.
Snapdeal and Jabong together accounted for more than 80% of GoJavas’s overall business.
Interestingly, Snapdeal, which committed an investment of $200 million into logistics and training sellers in July 2025, has pumped significant cash into GoJavas so far. The Alibaba-backed online marketplace owns a 42% stake in GoJavas and has invested about ₹ 237 crore in the company since March 2015.
In April, GoJavas named former executive of fast-moving consumer goods firm ITC Ltd, Amitabh Coomar, as its chief executive officer after the departure of Vijay Ghadge, who was chief operating officer. Ghadge now runs Snapdeal’s in-house fulfilment unit Vulcan Express as chief operating officer.
Starved of cash and big clients, GoJavas has laid off at least 1,500 delivery personnel and delivery hub executives. Several employees, including a part of the senior management at its corporate headquarters in Gurgaon, have also been asked to leave.
Logistics and supply chain are the backbone of e-commerce firms as sound infrastructure helps reduce delivery costs and ensures faster delivery which, in turn, helps win over customers. GoJavas primarily competed with Flipkart’s logistics firm eKart, Delhivery (SSN Logistics Pvt. Ltd), Ecom Express Pvt. Ltd and Dotzot, the e-commerce-focused arm of DTDC.