Third-party logistics (3PL) solutions provider Mahindra Logistics Ltd. (MLL) said on Monday it has agreed to acquire the business-to-business (B2B) express delivery business of Gurugram-based Rivigo Services Pvt. Limited (RSPL) and its branding for a cash consideration of Rs 225 crore.
Mahindra Logistics will buy the logistics and transportation unicorn’s B2B express business along with all rights, title, beneficial ownership and interest on slump sale basis, the company said in an exchange filing. It expects to complete the deal by 1 November, 2022.
Rivigo will continue to operate its truck fleet & the rights to the full-truck-load (FTL) operations without the ‘Rivigo’ brand.
The acquisition helps cash-strapped Rivigo, which was in the market looking for potential buyers after the pandemic disrupted its business, as per media reports. The startup was last valued at $1.05 billion in September 2019.
The trucking logistics startup raised Rs 16 crore (around $2 million) in a series H round in August this year, led by existing investors elevation Capital and Warburg Pincus affiliate Spring Canter Investment.
MLL purchase price is lower value than the startup’s B2B express business’s last turnover of Rs 373.3 crore in FY22, up from Rs 295 crore in FY21. The startup’s B2B segment currently covers over 19,000 pin codes across the nation, and has more than 250 processing centres and branches.
“This acquisition will enhance and strengthen our offerings and reach for our customers in the B2B express and PTL space,” Rampraveen Swaminathan, managing director & chief executive officer, Mahindra Logistics Limited said.
MLL can leverage Rivgios’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 deepening delivery networks, enhance digital adoption and invest in agile supply chains,” he added.
Rivigo was founded in 2014 by Deepak Garg and Gazal Kalra. The company is backed by investors including Elevation Capital, Warburg Pincus, Trifecta Capital among others.