Snapdeal is one of the e-commerce companies in India which had again pumped their funds high with the worth of 27 crore INR to their logistics arm. As they trying to sell its logistics arm Vulcan Express.
In July, for the sale of Vulcan, there were early-stage talks with a few contenders including Gati, the express distribution and supply chain company, considered one of the largest in the country. But it did not materialise into a firm deal.
This is the third time since June, Snapdeal has pumped in funds into the company.
The filings with the Registrar of Companies said Snapdeal has allotted 2.7 crore shares worth ₹27 crore to Vulcan Express. For 2015-16, Vulcan Express has posted losses of about ₹20 crore on revenues of around ₹185 crore.
In June, Snapdeal invested ₹36.5 crore into Vulcan and then came its biggest investment of ₹152.44 crore, in September this year.
Also, Snapdeal is trying to sell Vulcan Express since it was in talks for the possible merger with Flipkart early this year which eventually failed. For 2015-16, Vulcan Express has posted losses of about ₹20 crore on revenues of around ₹185 crore.
Snapdeal is part of Jasper Infotech and was co-founded by Kunal Bahl and Rohit Bansal in 2010. And, the Vulcan Express was formed in 2014 after Snapdeal abandoned its plans to acquire GoJavas, another logistics company in which it had invested about ₹250 crore and owned over 40% stake.
According to the Sources, the Vulcan Express operates in over 100 cities and over 50 per cent of the deliveries of Snapdeal is carried out by the logistics subsidiary.