E-commerce platform Snapdeal which sold Freecharge to Axis Bank last year in order to boost their core e-commerce business now sells its logistics subsidiary Vulcan Express in an all-cash deal for Rs.35 crore to Kishore Biyani's Future Supply Chain Solutions. It is expected that this transaction of divesting will help Snapdeal to put more focus on its core service i.e. e-commerce.
Kishore Biyani, Founder and CEO of Mumbai-headquartered Indian private conglomerate Future Group said in a statement that with this deal the company plans to boost its last mile capabilities and also offer state-of-the-art solutions to its e-commerce and retail clients.
Jason Kothari of Snapdeal, also said, Similar to our recent sale of FreeCharge, we believe Snapdeals sale of Vulcan Express to Future Group is a successful deal for all three parties. Snapdeal divests off an asset that is non-strategic in nature for Snapdeal 2.0, allowing it to focus its capital and management on its core e-commerce business.
She added, Future Group gains high-quality pan-India end-to-end e-commerce logistics capabilities, and Vulcan secures a great new home for its business, including its team.
Hardeep Singh, CEO of Vulcan Express, said, This transaction provides an immense opportunity for Vulcan Express to grow rapidly and benefit from the vast linkages by being part of Future Group.
In 2015, Snapdeal acquired e-commerce order management solution provider Unicommerce for $40 million, is now in talks with Amazon and multiple other companies to sell it for an estimated value of $150-$200 million, as per ET reports.