Gurgaon based ecommerce logistics service and supply chain provider Delhivery has acquired offline cash collection network – GharPay, the company told Nextbigwhat. The deal size was not disclosed.
GharPay’s CEO Abhishek Nayak told Nextbigwhat that only the cash collection part of the company was acquired and the rest remains with them.
The Sequoia backed startup collects cash on behalf of ecommerce companies in case mode of payment is not credit/debit or Internet banking.
With presence in 17 cities, GharPay services over 700 clients including Times Internet, Fetise and Travelyaari.
The Hyderabad based company claims to have strong network of 250 people, and covers around 1,000 geographical pincodes across the country. The deal was first reported by Iamwire.
The acquisition will help Delhivery to strengthen its payment collection feature, however its not clear whether brand name GharPay, which is now owned by Delhivery will continue to operate with independent identity or merge with Delhivery.
Delhivery, which was started as a last mile logistic solution for ecommerce has now forayed into end to end logistics solution including warehousing, cash collection, custom logistics solution and inventory management. The Times Group funded company currently serves more than 90 clients.
Adding GharPay’s core competencies in offline cash collection process and significant client base will help Delhivery to earn extra 2-7% on each “cash on delivery” order, which GharPay usually charges from ecommerce player for collecting payments. Given that 45 to 50% of overall ecommerce transactions are COD based, Delhivery will have two revenue channels one for end to end logistics or last mile delivery and another for cash collection in the same cost (It is possible for delivery staff to do both delivery and payment collection).
Launched in 2011 by Arpit Mohan and Abhishek Nayak – GharPay had raised seed capital from Raju Reddy and Sequoia Capital. Earlier in 2012 the company had started Cash Before Delivery (CBD) with men’s only private label Fetise, however looks like it didn’t work well for GharPay as Indian consumers are more friendly and at ease with COD based payment option. GharPay also partnered with cloud telephony company Kookoo for IVR based offline payment services.