Mahindra to buy Rivigo’s B2B express biz

Mahindra Logistics Ltd will purchase business-to-business (B2B) express supply enterprise of Rivigo Services Pvt. Ltd, the third-party logistics options supplier stated on Monday.

Mahindra Logistics will buy the unicorn startup’s B2B express supply enterprise together with all rights, title, helpful possession and curiosity, in an all-cash deal valuing the corporate at 225 crore, it stated in an change submitting. Mahindra expects to full the deal by 1 November. As a part of the transaction, Mahindra Logistics can even personal Rivigo’s prospects, group, belongings, expertise platform and the Rivigo model, Mahindra stated in a press launch. Rivigo will, nevertheless, proceed to function its truck fleet and have the rights to full truck load operations.

Mahindra’s transfer will assist cash-strapped Rivigo, which was searching for potential patrons after the pandemic-led disruptions in enterprise to run its different operations, as per media experiences. The startup was final valued at $1.05 billion in September 2019. The buy worth is decrease than the startup’s B2B express enterprise’s income of 373.3 crore in FY22, up from 295 crore in FY21.

The startup’s B2B section covers a community of 19,000 pin codes throughout the nation, and has over 250 processing centres and branches. “The acquisition will improve and strengthen our choices and attain for our prospects within the B2B express and PTL ( partial truck load) house,” 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.

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