Online marketplace Snapdeal has invested $20 million in GoJavas, a third party logistics player, a company statement said here on Wednesday.
This is the second round of investment made by Snapdeal in the company.
“The investment in GoJavas is in line with Snapdeal and GoJavas’s strategic partnership signed earlier this year to build capacities for the future and strengthen the supply chain ecosystem,” the statement said.
The company is working consistently for the last 8-10 months to strengthen its supply chain and logistics. It has invested $100 million (roughly Rs. 650 crores) in the last six months to improve its delivery timelines by 70 percent.
It will invest an additional $200 million (roghly Rs. 1,300 crores) in the next 12 months to further strengthen its supply chain.
The statement said the partnership between Snapdeal and GoJavas has proved to be mutually beneficial. “The companies have worked together to build capacity and expand reach.”
“GoJavas’s reach expanded to include 150 more cities within 100 days of having entered into a partnership with Snapdeal. GoJavas currently delivers to 350 cities,” it added.
“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,” Rohit Bansal, co-founder, Snapdeal said.
“Our strategic partnership with Snapdeal has helped us become one the largest independent logistics players in the country with current revenue run rate of Rs. 500 crores, while keeping our operations sustainable and efficient because of the higher visibility of future sales and targeted cities for expansion,” Vijay Ghadge, chief operating officer, GoJavas said.