India’s largest courier service, Gati, Peepul Capital and supply-chain player TVS Logistics have decided to acquire Vulcan Express, the logistics arm of Snapdeal after showing their world class services and remarkable growth in the last few years. A transaction might take place in the coming 60 days, with Vulcan Express to fetch approx ₹120 Crore.
Moreover, the acquisition of Vulcan Express may be managed by Warburg through one of its portfolio companies in India. Emails sent to all the three companies GATI, Peepul Express and TVS Logistics did not give any responses while talking with the press.
Jason Kothari, chief strategy & investment officer of Snapdeal said to ET that “Vulcan Express has a strong management team and is achieving one of the highest levels of efficiency and service levels in the e-commerce logistics space. We are not surprised by the high level of interest we are seeing in acquiring the business but cannot mention any further specifics,”
This development comes as Snapdeal is trying to sell its assets and subsidiaries in order to raise cash to fund the routine operations. Snapdeal had recently rejected a buyout offer of ₹5500 crore extended by Flipkart.
Apart from this, he is spearheading the transaction on behalf of the online marketplace, with the advice of Alvarez and Marsal.