Snapdeal.com will invest US$150 million-US$200 million to strengthen its delivery network in the next financial year. It is speculated that Snapdeal are in talks to acquire GoJavas for Rs 150 crore to Rs 200 crore. GoJavas where the logistic partner of Jahong, an online fashion retailer. However, Snapdeal spokespersons refuted the story and wrote “I am writing to you to clarify that while Snapdeal and GoJavas have entered into a strategic partnership, this is in not an acquisition or buy out,” No financial details were provided.
On Tuesday co-founder of Snapdeal Rohit Bansal said that the SoftBank backed company had invested in a minority stake in the company GoJavas he did not state how much the investment was worth. Snapdeal’s latest investment comes less than a week, after the New Delhi-based company stepped up gears to acquire mobile recharge platform, Freecharge, for about $450 million (Rs 2,800 crore), and which could turn out to be the biggest transaction in India’s rapidly expanding consumer internet sector
There are 300 million strong urban middle classed who expect great deals both on products and delivery services. For companies like Snapdeal, Flipkart and Amazon India it is very important to get the correct logistics in place to be able to offer a efficient service. Snapdeal’s latest investment comes less than a week, after the New Delhi-based company stepped up gears and acquired a mobile recharge platform, Free charge, for about $450 million (Rs 2,800 crore), and which could turn out to be the biggest transaction in India’s rapidly expanding consumer internet sector. The biggest deal in the country’s consumer Internet space so far has been Bangalore-based Flipkart’s acquisition of fashion portal Myntra for an estimated $370 million (Rs 2,300 crore) in May 2014.