Home / Industry / Retail /  Snapdeal invests $20 million in GoJavas to strengthen supply chain

New Delhi: E-commerce platform Snapdeal, owned by Jasper Infotech Pvt. Ltd, said on Wednesday that the company had invested $20 million in logistics firm GoJavas to further strengthen its supply chain.

The company, which has already invested close to $100 million in last six months in improving its last mile services, will further invest $200 million in the next 12 months.

On Friday, Mint reported that Snapdeal had infused 117 crore of fresh capital and an undisclosed amount by doing a secondary stake sale into GoJavas, making the online marketplace the single largest shareholder in the company with a 42% stake.

In March, Snapdeal bought a 20% stake in the logistics provider for 120 crore.

“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 six 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," said Rohit Bansal, co-founder, Snapdeal.

GoJavas now delivers to 350 cities up from 150 cities pre-partnership, according to the company.

The current deal values GoJavas at 600 crore, the same price at which the last fund raising was done nearly six months ago, signaling that the days of eye-popping valuations for India’s e-commerce start-ups may be nearing an end.

The money raised in the current round will be used towards working capital and business development, Mint had reported earlier.

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