Third-party logistics solutions provider (3PL), Mahindra Logistics Ltd. (MLL), announced on Monday that it has agreed to acquire the business-to-business (B2B) express delivery business of Gurugram-based Rivigo Services Pvt. Limited (RSPL) and its brand for a cash payment of Rs 225 crore.
Mahindra Logistics will purchase the logistics and transportation unicorn’s B2B express business along with all rights, titles, beneficial owners and interests on a sell-down basis, the company said in an IPO filing. The deal is expected to close by November 1, 2022. Rivigo will continue to operate its truck fleet and full truckload rights (FTL) without the Rivigo brand.
The acquisition helps financially-struggling Rivigo, whose media scoured the market for potential buyers after the pandemic disrupted its business. The startup was last valued at $1.05 billion in September 2019.
The trucking logistics startup raised Rs 16 crore (about $2 million) in a Series H round in August, led by existing investors Elevation Capital and Warburg Pincus subsidiary Spring Canter Investment.
The MLL purchase price is below the latest revenue from the startup’s B2B express business of Rs.373.3 crore in FY22, from Rs.295 crore in FY21. The startup’s B2B segment currently includes more than 19,000 PINs nationwide and has more than 250 processing centers and branches.
“This acquisition will enhance and strengthen our offering and reach our customers in the B2B express and PTL space,” said Rampraveen Swaminathan, chief executive officer and chief executive officer of Mahindra Logistics Limited.
MLL can leverage Rivgios’ robust network, full-service technology suite and process capabilities to expand its offering.
“B2B Express Logistics continues to see strong favorable winds as customers focus on deepening delivery networks, improving digital adoption and investing in flexible supply chains,” he added.
Rivigo was founded in 2014 by Deepak Garg and Gazal Kalra. The company is backed by investors such as Elevation Capital, Warburg Pincus, Trifecta Capital and others.