Snapdeal-owned logistics firm Vulcan Express had received $5.68 million from the e-commerce parent entity Jasper Infotech in June, according to a VCCircle report.
The logistics arm of Snapdeal had raised this sum by allocating $568,000 crore equity shares with a face value of Rs 10. The deal happened at a time when the Flipkart-Snapdeal merger talks were still going on and expected to happen anytime soon then.
In the same month, Vulcan also increased its authorised share capital from Rs $6.5 million to $31 million to meet its funding requirements.
In the past three months, the company has witnessed a share capital rise of around 200-times.
In April, the company had undergone a similar exercise where its share capital was increased from around Rs $175,000 to $6.55 million by creating 40,880,000 equity shares of Rs 10 each.
According to media reports, Snapdeal still wants to sell Vulcan in more than $15 million. The deal is expected to happen in a month.
The company, which offers end-to-end logistics and supply chain solutions for merchants, is currently operational in more than 100 cities. It also offers a range of services including pickup, consolidation and fulfilment operations, warehousing solutions, intercity movement and last-mile delivery.
In the fiscal year 2016, Vulcan Express clocked a net revenue of Rs 184 crore, up from Rs 26.7 crore in FY15. However, the jump in revenue also gathered some losses, which increased six-fold to Rs 20 crore from Rs 3.2 crore in FY15.
This development is reported a day later, when Snapdeal announced the termination of its merger with Flipkart, which was being negotiated between the companies for the past six months. Post the announcement, Snapdeal plans to take an independent path.
Amidst this, Snapdeal successfully sold its digital wallet platform FreeCharge to Axis Bank for $60 million.