Anand Rai, the logistics executive who bought courier firm GoJavas from Snapdeal last year has alleged that the company’s business has fallen drastically since early this year after its early investor and largest customer Snapdeal stopped giving it orders.
In an interaction with Moneycontrol soon after he filed a police complaint against Snapdeal founders Kunal Bahl and Rohit Bansal, Rai claims that the company was handling daily shipments of around 25,000 units which have fallen down to about 2,000 because of a pull-out by Snapdeal.
“GoJavas is a very small company now. We are doing only about 2,000 shipments on a daily basis. We are just trying to gear that up again,” Rai said adding that during the time he acquired the company from Snapdeal, GoJavas was doing around 25,000 orders daily.
“About 50-60 percent of the business was coming from Snapdeal,” he added.
Born in Jaunpur, Rai had moved to Mumbai to work as a courier boy before starting his own firm Pigeon Express. Rai had acquired 51% stake in Goajavas earlier and completed a 100% ownership in March, this year.
In 2015, Snapdeal had invested close to USD 39.2 million in GoJavas which was handling a major part of its shipments. The company lost Snapdeal as its major customer earlier this year.
GoJavas currently gets its business from a couple of other e-commerce companies besides an offline cosmetics firm, Rai claimed.
The fresh complaint has been filed by Quick Del Logistics (Owner of GoJavas) with the Delhi Police’s Economic Offences Wing. GoJavas alleges criminal breach of trust, intellectual property theft and misappropriation of funds among other things by Snapdeal in the complaint.
Snapdeal terms allegations by Rai’s firm as baseless. “The attempts by M/s Quickdel Logistics Private Limited run contrary to the “Release and Settlement Agreement” dated 31st March 2017 signed by it. All these allegations are baseless and nothing but an uninformed and frivolous attempt at extortion. We will initiate strict legal action in this regard,” said a Snapdeal spokesperson.
According to Rai, Snapdeal had given him a ‘verbal commitment’ of supporting GoJavas even after he purchased the company from Jasper Infotech (parent of Snapdeal) for a notional (undisclosed) price.
GoJavas had a revenue of over Rs 650 crore with over Rs 110 crore in losses at the time of change of hands in August, last year.
Ironically, in the last few months, Snapdeal itself underwent through a lot of turmoil. The company which was in talks to be acquired by rival Flipkart chose to go solo.
According to two sources, Snapdeal’s daily order volume has declined to about 50,000 from 1.6 lakh shipments a year ago.