GoJavas has been in news from few days thanks to its promoters

GoJavas started off as logistics arm of Jabong but in 2013 thanks to Praveen Sinha itbecame an independent logistics firm. It is co-owned by Snapdeal and a group of promoters including Praveen Sinha, Ashish Choudhary, Randhir Singh. This startup might be bought by Courier service provider Pigeon Express Pvt. Ltd.

GoJavas two major customers

It had two major customers, i.e. Snapdeal and Jabong. 80% of business is from them. GoJavas refused Snapdeal’s offer to buy out so Snapdeal stopped giving business and they are doing logistics through their own firm called Vulcan Express. While on the other hand Jabong has been bought by Flipkart, so Jabong’s logistics will be taken care of Flipkart’s logitistics company eKart.

Overdue payments

The company has to get payments worth Rs 50 crores from clients since November 2015. Of course this is a huge hit on their working capital and paying employees will be a big hassle thanks to this burden. The company is technically not operating from August 2^nd and sent pink slips to employees asking them to look for employment from August 24^th.

Expenses

Logistic industry is prone to have the highest expenses when compared to others. This is because of the volume of resources required to run it. We have seen off late startups shutdown due to logistics expenses. Some startups outsourced logistics operations to reduce costs.