Online eCommerce giant Snapdeal is in talks with logistics firm GoJavas in a bid to acquire the company at an estimated amount of Rs 150-200 crore. Besides, the e-tailer is all set to hire 1000 employees for the upcoming quarters.
According to a report in Economic Times, Snapdeal is expected to announce the acquisition of the former logistics arm of e-tailer Jabong in the next two weeks. Besides, the deal size could range between Rs 150-200 crore, they added.
As per the report, on being asked about the acquisition, Snapdeal’s spokesperson said: "These are speculations and as a policy, we do not comment on speculations."
Logistics Firm Gojavas denied to comment on the matter. Although, the insiders are expecting the acquisition will be a win-win for both the companies.
Besides, GoJavas has been providing logistics solutions for companies like HealthKart, Jabong, Yepme and Lenskart, covers over 2,500 pincodes in the country.
Further, Snapdeal is all set to hire 1,000 employees,who are familiar with particular geographies well - for their regional centres in the next two quarters, in an attempt to help the company stay closer to local sellers.
Commenting on the matter, Saurabh Nigam, VP – HR told Et retail: “Each centre will have an M&A and an accounting team and around 500 employees will be hired in both groups. We will follow the hub-andspoke model and these employees will go and get the merchants from local markets.”
He further added, "Hiring will be centrespecific, so Chennai and Hyderabad in the South; Jaipur, Jalandar in the North; Surat, Ahmedabad and Pune in the West and Kolkata in the East are some of the regions identified.
Snapdeal has created recruitment teams for each centre and even roped in hiring agencies for the local hiring.
‘Those with experience in sales will be on the company radar in these regions. As of now, 300 such employees are on board and the rest will be completed in next two quarters, ‘adds Nigam.
As per the ET retail report, Snapdeal has a workforce of around 5,000 employees and is one of the largest recruiters in engineering and management campuses from the e-commerce industry.