Fri. Mar 29th, 2024
Vulcan express

Future Group, the company known for its prominence in Indian retail and fashion sector, is reportedly in final stages of talks to acquire logistics startup Vulcan Express for around Rs. 50 crores ($7.8 million).

A report from Economic Times suggests that the all-cash transaction deal is almost final and could get signed within a day or two. Notably, Vulcan Express is the logistics arm of struggling e-commerce startup Snapdeal.

Earlier, there were reports that many companies were interested to acquire Vulcan Express and Jasper Infotech — its parent company, had received bids from TVS Logistics, AllCargo and private equity firm Warburg Pincus, among others.

The cash generated through selling-off this logistics firm will provide Snapdeal with the capital to keep its business afloat. Earlier, the company had sold off its payments platform FreeCharge to Axis Bank at a significant loss.

Founded in 2014, Vulcan Express provides end-to-end logistics services, including warehousing, line haul and transportation, last-mile distribution and reverse logistics, as well as quality control and refurbishment of goods.

At present, the company contributes to 250,000 deliveries daily and had recently acquired more than a million square feet warehouse. Snapdeal had been looking for buyers of its logistics arm since April 2017, when it called off the merger with rival Flipkart.

By Jeet