The Economic Times: March 17, 2015
New Delhi: In its sixth deal till date, Jasper Infotech, which owns and operates online marketplace Snapdeal.com, has invested an undisclosed amount in logistics venture GoJavas, as part of its strategy to strengthen its delivery network in the country .
On Monday, media reports had speculated that Snapdeal was in talks to acquire GoJavas, which was previously the logistics arm of online fashion retailer Jabong before being spun off into a separate entity, for reportedly Rs 150 crore to Rs 200 crore. However, Snapdeal spokespersons refuted the story and said that the SoftBank-backed online marketplace had entered into a "strategic partnership" with GoJavas.
"I am writing to you to clarify that while Snapdeal and GoJa vas have entered into a strategic partnership, this is in not an acquisition or buy out," the Snapdeal statement said. No financial details were provided.
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.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 .
The GoJavas investment by Snapdeal follows an announcement by the company's founders to allocate about 60% of its total spend to technology, including acquisitions.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.