After roping in GoJava’s COO Vijay Ghadge, Snapdeal is inching closer to crack the acquisition deal of the logistics firm. GoJavas is primary delivery partner of the online marketplace Snapdeal which also holds a minor stake in the logistics company.
Two sources close to the story revealed that Snapdeal has speed up its operations to acquire GoJavas since the company wants to ramp up its delivery chain. Recently, Snapdeal has also hired Vijay Ghadage who was working as the COO in GoJavas.
Though the company was valued at Rs 600 crore when Snapdeal bought its 42 per cent stakes last, but the online marketplace has not yet revealed how much it is willing to pay for the deal. However, market experts feel that this move by the company can act as a catalyst for its business. It will help the firm to climb up the ladder and to come head to head with Amazon India. Over the past six months, Snapdeal has suffered immensely in its business and if this deal goes through, it can clearly push the alarming bell for Amazon India and Flipkart.
Snapdeal, according to the sources, is likely to execute the acquisition through Vulcan Express, its end-to-end logistics unit that primarily deals with its bulk orders and manages the online marketplace's delivery centres and its almost three-lakh sellers. However, when media contacted the company, its spokesperson declined to reveal anything on the subject.
As on February, GoJavas delivered to about 3,200 pin codes, or 300 towns and cities, and has targeted to be operational in 4,000-4,500 pin codes, or 600-800 towns and cities, in the following 12-18 months.