Snapdeal, the struggling e-commerce company is reportedly going to sell its logistics arm Vulcan Express for around ₹30 crore to AllCargo.
The Delhi-based e-commerce firm has been struggling to keep the business afloat from quite some time. The company has been raising money by selling off its non-core assets and businesses.
The money raised by selling Vulcan Express can keep the business running at Snapdeal for some more time. At this point, it seems very difficult for Snapdeal to regain its position in the market, which is now being dominated by Amazon and Flipkart.
Earlier, it sold its payments platform FreeCharge to Axis Bank for about ₹385 crore. The development came after it walked away from the merger deal with Flipkart.
AllCargo is a Mumbai-based global transportation logistics solutions provider which operates in over 160 countries, and has been listed on BSE.
Vulcan Express was founded in 2013 as an end-to-end logistics and supply-chain solution for managing Snapdeal’s shipments. This happened after Snapdeal ended its contract with GoJavas.
Snapdeal had a big stake in the logistics firm GoJavas and when the firm was acquired by Pigeon Express in August 2016, Snapdeal offloaded its entire stake.
While e-commerce players like Flipkart and Amazon India are focusing on strengthening their digital payment and logistics subsidiaries, Snapdeal is getting rid of them.