Once again Snapdeal has started gaining media attention. Currently in the phase of building Snapdeal 2.0, as expected there is nothing positive so far for the Gurugram-based ecommerce firm. After the recent news of its CFO Anup Vikal leaving the firm and GoJavas sueing it for $45.8 Mn, now the company is said to be looking for a buyer to sell off its logistics arm Vulcan Express.
As per reports, Snapdeal might sell off Vulcan Express to AllCargo, a Mumbai-based global transportation logistics solutions provider in over 160 countries. The firm is listed on BSE and the deal can be possibly done for $4.6 Mn (INR 30 Cr).
“The term sheet hasn’t been signed yet and the company is evaluating a draft,” said a source closely associated with the development adding that what remains to be decided is whether it will be an all-cash deal or not. Also, AllCargo has termed the development as ‘market speculation’ in response to a media query by Money Control.
Vulcan Express was founded in 2013 as an end-to-end logistics and supply-chain solution for managing Snapdeal’s shipments. This came at a time when Snapdeal had discontinued its contract with third-party ecommerce logistics player GoJavas.
Currently, the company’s services include transportation, warehouse management, line haul, last-minute distribution, quality control, inventory tracking as well as reverse logistics. Over the years, it has reportedly acquired more than 1 Mn square feet of warehouse space, which is currently used to handle over 250K daily deliveries.
In 2015, Vulcan received $3.75 Mn (INR 25 Cr) from its parent entity Jasper. Also, Vulcan Express raised $23.8 Mn in September 2017 and $5.68 Mn (INR 36.5 Cr) in July 2017 from Jasper Infotech.