Courier service Pigeon Express has acquired a majority stake in GoJavas, an India-based logistics and supply chain services provider backed by e-commerce company Snapdeal, for an undisclosed amount, Business World has reported.
Spun out of e-commerce company Jabong in 2013, GoJavas provided a reverse collection service for e-commerce customers and last-mile logistics for online retailers, but suspended operations at the start of the month citing technical reasons.
A source told the Economic Times the company had failed to make upwards of Rs 500m ($7.5m) in payments due to clients between November and December 2015.
Snapdeal paid $19.1m for a 20% stake in GoJavas in March 2015 and invested a further $20m in October, giving it a 42% share.
Snapdeal, which has invested some Rs 360m in its own logistics operation, Vulcan Express, had been in talks to acquire GoJavas but those fell through a few weeks ago due to differences in valuation.
However, the firm has confirmed to ET that it has no plans to exit GoJavas, and in fact plans to make use of the company to fill part of its delivery requirements during the festive season, according to Business Standard.