The latest fund infusion is the second such for Snapdeal in GoJavas, and comes seven months after the e-commerce marketplace announced an undisclosed strategic investment in the Gurgaon-based third-party logistics services provider in March earlier this year.
Snapdeal Co-founder and Chief Operating Officer Rohit Bansal said,
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
Proceeds from the latest round of equity financing will be used by GoJavas to expand its footprint to include 100 more cities within the next 6-12 months, according to the press statement. The company, which reported revenue of about Rs 200 crore for the last fiscal, claims to reach consumers spread across 350 cities and towns in 3,000-plus pin codes.
The investment in GoJavas comes at a time when the online marketplace has earmarked about $300 million (about Rs 2,000 crore) to strengthen its supply chain and logistics operations, as it prepares to battle for greater market share in the country’s highly-competitive e-commerce sector.
Bansal added saying,
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 6 months and our teams have worked closely to come up with highly innovative solutions that are further enhancing customers’ shopping experience on Snapdeal
Following the fund-raising, Snapdeal has continued on its aggressive investment strategy that has seen it make a number of strategic bets and outright acquisitions.