Pigeon Express to acquire GoJavas

Courier service provider Pigeon Express Pvt. Ltd is in advanced talks to acquire e-commerce focused logistics service provider GoJavas (Quickdel Logistics Pvt. Ltd) which suspended operations last week amid an organization overhaul, in a cash stock deal.

GoJavas, which counts Snapdeal (Jasper Infotech Pvt. Ltd) as a key investor, had started scouting for possible suitors after a bid by Snapdeal for a complete buyout fell through. Besides Pigeon Express, the company had also held talks with another Delhi based courier service provider, Trackon Couriers Pvt. Ltd.

Delhi headquartered Pigeon Express was founded in 2004. The company handles doorstep pickup and delivery of bulk packets, parcels and other consignments, essentially competing with larger rivals such as DHL, DTDC and Bluedart. The company claims to handle 1.2 lakh deliveries every day and has 135 delivery centers across the country. Snapdeal and Jabong together accounted for more than 80% of GoJavas overall business.

Logistics and supply chain are the backbone of e-commerce firms as sound infrastructure helps reduce delivery costs and ensures faster delivery which in turn helps win over customers. GoJavas primarily competed with Flipkart’s logistics firm eKart, Delhivery, Ecom Express Pvt. Ltd and Dotzot, the e-commerce focused arm of DTDC. 

CraftsVilla Acquires Sendd

CraftsVilla, an online marketplace for Indian products, has acquired the on-demand shipping service provider Sendd for $4.5 Million. Post-acquisition, Sendd will continue to operate independently and offer its services to other firms as well. CraftsVilla will use the acquisition to strengthen its logistics capabilities.

Founded in April last year, Sendd allows businesses to send parcels to 20,000 pin codes across India. It provides packaging, branding and insurance policies for parcels and provides an API for partner integration. The company also claims to provide reverse pickups and international shipments across all countries.

CraftsVilla was founded in 2011. It takes a 20% commission on the products sold; however, it is not clear if the company does this on per item or per order, which might include many items. The company claims to have 25,000 sellers on its platform, along with 3.5 Million sold products. In November last year, CraftsVilla raised Series C funding worth $33.3 Million after the company raised Series B funding worth $18 Million in April the same year.

Last year saw a consolidation in logistics services with various companies getting acquired or invested in by business customers or competitors. Flipkart acquired strategic minority stake in MapmyIndia to pad its supply chain and logistics operations. Grofers had acquired Townrush. Snapdeal invested in GoJavas.