India: Snapdeal puts $23.8m in logistics arm Vulcan Express

Photo: Pixabay

Snapdeal, the parent company of logistics firm Vulcan Express, has put in $23.8 million (Rs 152 crore) in the company.

According to an Inc42 report citing company’s filing with Registrar of Companies (RoC), Vulcan issued 152,449,004 equity shares of Rs 10 each to Snapdeal’s parent company Jasper Infotech.

The funding comes at a time when Snapdeal was reportedly looking to sell the logistics company. Earlier TVS Logistics and other companies were also in talks with Jasper for Vulcan acquisition. Last month also, it infused $5.68 million in Vulcan.

In July, Snapdeal sold its mobile transactions platform Freecharge for $60 million.

Founded in 2013, Vulcan is an end-to-end logistics and supply-chain solution. Currently, the company’s services include transportation, warehouse management, line haul, last-minute distribution, quality control, inventory tracking as well as reverse logistics. It operates in more than 100 cities.

Vulcan reported a net revenue of Rs 184 crore in FY16 which was Rs 26.7 crore in FY15. It had a loss of Rs 20 crore from Rs 3.2 crore in FY15.

Snapdeal which was in merger talks with e-commerce major Flipkart for the last six months, has ended the discussions. After months of opposition and revised bids, it was expected that Snapdeal would soon be sold to Flipkart for around $900-950 million.

Also Read:

Flipkart may benefit most from Snapdeal calling off its sale
Snapdeal ends sale talks with Flipkart, wants to pursue independent path