Within a week after Snapdeal infused fresh funds of ₹27 crore into Vulcan Express, its logistics arm, here comes the news that Future Group, India's larest retailer is in talks to buy Vulcan for about ₹50 crore in an all-cash deal.
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.
With Vulcan purchase, Future Group wants to boost its strategy of integrating the retail company's digital and brick-and mortar retail businesses.
Formed in 2014, Vulcan Express manages 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.
Elaborating the purchase deal, the ET report said, "It will be a distress sale and the final valuation could be less than Rs 50 crore. The contours of the deal, including the size and through which company it will be done, are still being worked out."
It is also said that even if Snapdeal sell out Vulcan to whom so ever, the logistics company will continue to be the shipping and delivery partner of e-commerce firm.
Kishore Biyani-owned Future Supply Chain, on other hand, has raised Rs 650 crore by listing on the stock exchanges, a couple of weeks ago. The decade-old company caters to clients across consumer, food and beverages, ecommerce and electronics and gets about 63% of its revenue from group entities. At present, Future Group's technology integration, internally called Retail 3.0, is being piloted by making several Easyday stores a marketplace, giving consumers access to the company's entire inventory through the digital medium.
In April 2016, Future Group had also acquired Fabfurnish, an online furniture retailer, in an all-cash deal. The company however failing to run the purchased business and now its been reported that Kishore Biyani will shut down the Fabfurnish business.
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.
With Vulcan purchase, Future Group wants to boost its strategy of integrating the retail company's digital and brick-and mortar retail businesses.
Formed in 2014, Vulcan Express manages 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.
Elaborating the purchase deal, the ET report said, "It will be a distress sale and the final valuation could be less than Rs 50 crore. The contours of the deal, including the size and through which company it will be done, are still being worked out."
It is also said that even if Snapdeal sell out Vulcan to whom so ever, the logistics company will continue to be the shipping and delivery partner of e-commerce firm.
Kishore Biyani-owned Future Supply Chain, on other hand, has raised Rs 650 crore by listing on the stock exchanges, a couple of weeks ago. The decade-old company caters to clients across consumer, food and beverages, ecommerce and electronics and gets about 63% of its revenue from group entities. At present, Future Group's technology integration, internally called Retail 3.0, is being piloted by making several Easyday stores a marketplace, giving consumers access to the company's entire inventory through the digital medium.
In April 2016, Future Group had also acquired Fabfurnish, an online furniture retailer, in an all-cash deal. The company however failing to run the purchased business and now its been reported that Kishore Biyani will shut down the Fabfurnish business.
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