Logistics company Delhivery on Tuesday, said it will acquire Pune-based supply chain software firm Algorhythm Tech Pvt. Ltd. for Rs 14.9 crore in cash, to enhance its integrated supply chain solutions offering.
Delhivery expects the transaction to complete by January 2023, post which Algorhythm Tech will operate as a wholly-owned subsidiary of the Gurugram-based logistics firm.
Algorhythm Tech, founded in 2003 by Abhaya Borwankar, Ajit Singh, and Sandeep Pendurkar, provides intelligent planning and optimization solutions for enterprise supply chain operations.
“Algorhythm Tech’s supply chain management (SCM) software products will enhance our supply chain solutions offering with value added services and also drive cost optimization in service delivery,” said Sandeep Kumar Barasia, chief business officer of Delhivery.
“These SCM products are becoming vital for supply chain planning and optimization and our clients will have the option of availing the benefits of these as part of our integrated solutions platform.”
The acquisition helps Delhivery to improve its supply chain business, offering value added service to its customers, while optimizing costs. The firm, months before its market debut, had bought California-based Transition Robotics in December 2021. Previously, in August 2021, it purchased Spoton Logistics.
Delhivery would be funding the acquisition from the proceeds it raised through the initial public offering in May this year, when it raised Rs 5,235 crore.
The firm provides a full suite of logistics services such as express parcel transportation, freight, freight, cross-border, supply chain, and technology services, covering a network of over 18,400 pin codes in the country. It works with over 28,000 customers, including large & small e-commerce participants.
“Delhivery has made strides to emerge as the largest logistics provider in India in a decade and we can think of no better team or company to work with to accelerate our joint vision for the future,” said Singh, co-founder, Algorhythm Tech.
Algorhythm Tech caters to clients across fast-moving consumer goods,, pharma, steel, auto and telecom industry, through its proprietary platform, offering end-to-end solutions. The company, which operated in India, had reported a turnover of Rs 3.6 crore in FY22, down from Rs 5.9 crore in FY21.
