Mahindra Logistics Ltd will acquire the business-to-business (B2B) express delivery business of Rivigo Services Pvt. Ltd, the third-party logistics solutions provider said on Monday.
Mahindra Logistics will buy the unicorn startup’s B2B express delivery business along with all rights, title, beneficial ownership and interest, in an all-cash deal valuing the company at ₹225 crore, it said in an exchange filing. Mahindra expects to complete the deal by 1 November. As part of the transaction, Mahindra Logistics will also own Rivigo’s customers, team, assets, technology platform and the Rivigo brand, Mahindra said in a press release. Rivigo will, however, continue to operate its truck fleet and have the rights to full truckload operations.
Mahindra’s move will help cash-strapped Rivigo, which was looking for potential buyers after the pandemic-led disruptions in business to run its other operations, as per media reports. The startup was last valued at $1.05 billion in September 2019. The purchase price is lower than the startup’s B2B express business’s revenue of ₹373.3 crore in FY22, up from ₹295 crore in FY21.
The startup’s B2B segment covers a network of 19,000 pin codes across the country, and has over 250 processing centres and branches. “The acquisition will enhance and strengthen our offerings and reach for our customers in the B2B express and PTL ( partial truck load) space,” Rampraveen Swaminathan, managing director and chief executive, Mahindra Logistics said. Mahindra will leverage Rivgio’s strong network, full-service technology suite and process capabilities to augment its offerings. “B2B Express Logistics continues to see strong tailwinds as customers focus on expanding delivery networks, enhance digital adoption and invest in agile supply chains,” he added.
Source: Mint