Snapdeal is all set to sell its logistics and supply chain management arm Vulcan Express to Future Supply Chain Solutions, a Future group promoted logistics company.
The group has reportedly signed a definitive agreement with Snapdeal to buy Vulcan in about Rs 35 crore, reported ET citing sources.
Incorporated in 2014, Vulcan Express gained prominence as Snapdeal’s relation with Go-Javas turned sour. Operational in more than 100 cities, it offers end-to-end logistics and supply chain solutions for merchants.
Interestingly, in the last six months, Snapdeal has invested over Rs 180 crore in Vulcan Express. Four months ago, the Kunal Bahl-led company invested Rs 152 crore alone in its logistics arm.
The deal seems to be materialised at a dirt cheap price. The acquisition will help Future group to integrate digital and physical retail for seamless connectivity with both.
Last year, Vulcan Express had got some interested buyers, including express distribution and supply-chain companies Gati, mid-market private equity firm Peepul and supply-chain player TVS Logistics are a few of them.
Vulcan Express seems to have a similar fate to its sibling Freecharge. The Snapdeal-owned digital payment company got acquired by Axis Bank in less than $60 million. The Gurugram-based Unicorn had acquired Freecharge in about $40 million in 2015.
Besides logistics, it also offers a range of services including pickup, consolidation and fulfilment operations, warehousing solutions, intercity movement and last-mile delivery.
Meanwhile, Snapdeal, the parent company of Vulcan Express, clocked a consolidated revenue of Rs 904 crore in the fiscal year 2016-17, a significant 26 per cent fall from the previous fiscal. It filed a consolidated revenue of Rs 1,214.3 crore from operations in 2015-16.