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. 

Snapdeal acquires Letsgomo Labs

Online marketplace Snapdeal.com had acquired Letsgomo Labs, a mobility solutions company. The move is aimed at strengthening its position in mobile commerce as online consumers in India increasingly choose to shop over their phones. Letsgomo was founded by Manav Kamboj and Vikas Banga. Its 76 member team will join Snapdeal and strengthen the organization mobile technology capabilities.

Letsgomo provides mobile technology solutions, design and strategy, besides consulting businesses in conceptualization of applications and mobile sites to implementation and hosting of the mobile platform. The company also works with leading e-commerce companies to help them strengthen their mobile capabilities.

In April, Snapdeal acquired mobile recharge service Freecharge in one of the biggest ever deals in the country start up domain, making Snapdeal one of the largest mobile commerce companies in India. In May, Snapdeal also announced the acquisition of Hyderabad based mobile technology company Martmobi for an undisclosed amount. The platform will help Snapdeal strengthen its mobile platform for sellers.

Snapdeal, promoted by New Delhi based Jasper Infotech Pvt. Ltd., currently gets 75% of its total orders via mobile based transactions. Some of the investors in Snapdeal include Ratan Tata, Softbank, Blackrock, and Temasek, eBay Inc., Premji Invest, Intel Capital and Bessemer Venture Partners.