Logistics firm GoJavas has temporarily suspended operations, citing technical issues.

gojavas

The company said that it was making changes to its operational model while trying to be more flexible in order to provide additional services and extra reach. It cited IT issues to be the reason for the roll-out to be affected.

“GoJavas is making changes to its operational model to be more flexible and to provide additional services and extra reach. However, we have encountered an IT (information technology) issue, which has hampered this rollout. We are working 24X7 to resolve this issue and will re-initiate load post thorough testing of our systems. All clients have been informed and are cooperating,”

A statement said.

However, details on what kind of changes and time to revive operations are not yet clarified by GoJavas.

Founded in 2013, GoJavas, which works with more than 450 companies, has stopped servicing its clients in the past 5-7 days.

Snapdeal declined to comment on the matter.

Snapdeal owns a 42 per cent stake in Gojavas and has recently attempted to buyout the remaining Gojavas but the deal has not materialised because of differences over valuation, according to media reports. It invested Rs 117 crores in GoJavas late last year, which followed a 2015 investment of $20 million in the company.

GoJavas primarily competes with Flipkart’s logistics firm eKart, Delhivery (SSN Logistics Pvt. Ltd), Ecom Express Pvt. Ltd and Dotzot, the e-commerce-focused arm of DTDC Express Ltd.

Last month reports emerged that Snapdeal was planning to completely acquire GoJavas. However at the same time, the market is rife with reports that GoJavas has been trying to raise external funds but that investors haven’t shown interest.

In April, GoJavas named the former executive of fast-moving consumer goods firm ITC Ltd, Amitabh Coomar, as its chief executive officer (CEO) after the departure of Vijay Ghadge, who was chief operating officer. Ghadge now runs Snapdeal’s in-house fulfilment unit Vulcan Express Pvt. Ltd as chief operating officer.

GoJavas was also in the news last month after a pseudonymous Twitter account holder created a controversy by circulating allegations that Jabong co-founder and former CEO Praveen Sinha made personal gains from business dealings at the fashion website, charges he has denied.

Apart from Snapdeal, it works as a logistics partner with over 150 brands including Paytm, HealthKart, LensKart, etc. It has served over 10 million orders.

Logistics and supply chain has always been the backbone of e-commerce firms as sound infrastructure helps reduce delivery cost and ensures faster delivery, which, in turn, helps win over customers.

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Sangeeta Ghosh

Sangeeta is an engineering graduate and is passionate about painting and music. She is always blooming with new ideas and is a real go to person when you are searching for one. Exploring good dining places across the city is her favourite off-field indulgence. At KnowStartup, she is an integral part of the editorial team.

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