Snapdeal is once again in the market to sell its logistics arm Vulcan Express. As per the reports, the company is going to sell Vulcan Express to AllCarge for about $4.6 million (₹30 crore).
AllCargo is a Mumbai-based global transportation logistics solutions provider. It operates in around 160 countries and has also been listed on Bombay Stock Exchange.
A person aware of the development has revealed that the term sheet has not been signed yet but the company is evaluating the draft. It remains to be seen if the deal will be an all-cash one or not.
Vulcan Express was founded in 2013 as an end-to-end logistics and supply-chain solution for managing Snapdeal’s shipments. Its services include transportation, warehouse management, line haul, last-minute distribution, quality control, inventory tracking as well as reverse logistics.
In 2015, Vulcan received $3.75 million (₹25 crore) from its parent entity Jasper Infotech. In September this year, it raised another $23.8 million. Prior to that, it had raised $5.68 million (₹36.5 crore) in July this year.
Earlier this year, Snapdeal sold off its digital payment subsidiary FreeCharge to Axis Bank for around $60 Mn. The decision came in after the Flipkart-Snapdeal merger deal fell through.
Since its merger deal didn’t materialize, Snapdeal decided to run the eCommerce platform independently with its new Snapdeal 2.0 Strategy. However, we are yet to hear anything good from the company.
Ever since it planned to continue running the entity, about a dozen of senior executives have resigned from the company, latest being Anup Vikal — the company’s CFO who was leading the merger talks.
Snadeal was earlier reported to be looking for a buyer for its logistics arm Vulcan Express. However, it was not able to get any interest for the firm and decided to keep the business afloat with new investment. Now, it seems that Snapdeal has changed its mind and is ready to sell it off for just about $4.6 million.