Jan 30: Continuing with its acquisition strategies, the Future Group’s Future Supply Chain Solutions will acquire Vulcan Express Ltd, better known as Snapdeal’s logistics service provider, in a deal valued at Rs 35 crore. The buyout, as per news reports, is aimed at boosting Future Group’s last mile capabilities.
The e-tailer’s sale plan is reportedly part of detaching the company from assets that are non strategic in nature for Snapdeal 2.0. Snapdeal executives believe that the move would help e-tailer to work more on its capital and management of its core e-commerce business.
With Vulcan in its fold, the Future group would stand to enjoy high-quality pan-India end-to-end e-commerce logistics capabilities, which in turn would aid Vulcan’s business prospects too. Freecharge, Snapdeal’s payment wallet was sold to Axis Bank for Rs 385 crore in July last.
Vulcan Express sees the deal as one of the most significant developments in the logistics industry in India. The Future Supply Chain exists pan India, with 44 warehouses, 14 logistics hubs, 106 branches, and over 4.2 m square feet of warehousing space. Vulcan provides end-to-end logistics services pan-India and services 2,000 pin codes in 100 cities since 2014.