Kishore Biyani's Future Group's Supply Chain Solutions today said it will fully acquire Snapdeal's logistics service provider Vulcan Express Pvt Ltd in an all-cash deal valued at Rs 35 crore, reported Business Line.
With this acquisition, Future Group plans to boost its last mile capabilities and also offer modern solutions to its e-commerce and retail clients.
The acquisition deal happened in less than a month after Snapdeal infused fresh funds of ₹27 crore into Vulcan Express. Earlier in this month only, we reported about the possibilities of this acquisition.
Snapdeal Chief Strategy and Investment Officer Jason Kothari said, "Similar to our recent sale of FreeCharge, we believe Snapdeal's sale of Vulcan Express to Future Group is a successful deal for all three parties."
"Company 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; 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.", added Kothari in an official statement.
In an internal mail to employees, Vulcan Express CEO Hardeep Singh said, "This association is being recognised to be one of the most significant developments in the logistics industry in India... Vulcan's capabilities will be of big value to Future Supply Chain in enhancing its footprint and services".
Earlier in July 2017, it was reported that for sale of Vulcan Express Snapdeal was in talks with a few contenders including Gati, the express distribution and supply chain company, considered one of the largest in the country, and TVS Logistics. But it did not materialise into a firm deal.
Formed in 2014, Vulcan Express used to manage about half of Snapdeal's deliveries and shipments, replacing gojavas as the primary logistics partner, when about three years ago Snapdeal abandoned its plan to acquire Gojavas.
Future Group has been on an acquisition spree in the recent past. In April 2016, Future Group had also acquired Fabfurnish, an online furniture retailer, in an all-cash deal, followed by acquisition of Shoppers' Stop for Rs 655 crore.
With this acquisition, Future Group plans to boost its last mile capabilities and also offer modern solutions to its e-commerce and retail clients.
The acquisition deal happened in less than a month after Snapdeal infused fresh funds of ₹27 crore into Vulcan Express. Earlier in this month only, we reported about the possibilities of this acquisition.
Snapdeal Chief Strategy and Investment Officer Jason Kothari said, "Similar to our recent sale of FreeCharge, we believe Snapdeal's sale of Vulcan Express to Future Group is a successful deal for all three parties."
"Company 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; 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.", added Kothari in an official statement.
In an internal mail to employees, Vulcan Express CEO Hardeep Singh said, "This association is being recognised to be one of the most significant developments in the logistics industry in India... Vulcan's capabilities will be of big value to Future Supply Chain in enhancing its footprint and services".
Earlier in July 2017, it was reported that for sale of Vulcan Express Snapdeal was in talks with a few contenders including Gati, the express distribution and supply chain company, considered one of the largest in the country, and TVS Logistics. But it did not materialise into a firm deal.
Formed in 2014, Vulcan Express used to manage about half of Snapdeal's deliveries and shipments, replacing gojavas as the primary logistics partner, when about three years ago Snapdeal abandoned its plan to acquire Gojavas.
Future Group has been on an acquisition spree in the recent past. In April 2016, Future Group had also acquired Fabfurnish, an online furniture retailer, in an all-cash deal, followed by acquisition of Shoppers' Stop for Rs 655 crore.
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