Mahindra Logistics rose 3.21% to Rs 520.75 after the logistics explanation provider declared openly the acquisition of the B2B express biz.
Mahindra Logistics will acquire the unicorn startup’s B2B express delivery business along with all rights, possession, effective ownership and investment, in an all-cash agreement estimating the company at around ₹225 crores, it said in an exchange filing. Mahindra anticipates completing the contract by 1 November.
Gurgaon-based Rivigo regulates a pan India B2B express network and has a strong client footing and a full-service technology suite. Rivigo’s B2B express network presently covers over 19,000 pin codes across the nation. Their 250+ processing centres and branches, stretching an area of more than 1.5 million sq. ft. will strengthen the significant strength of MLL’s express industry capacity.
Rampraveen Swaminathan, MD & CEO, MLL said, “This acquisition will enhance and strengthen our offerings and reach for our customers in the B2B express and PTL space. Team Rivigo has built deep capabilities, and we look forward to building on the strengths as we integrate the businesses. We are excited by the team, as they share a common ethos with a shared focus on empowering drivers & communities.”
Mahindra’s action will assist cash-strapped Rivigo, which was looking for potential consumers after the pandemic-led disturbances in business to run its other operations, as per agencies announcements. The startup was last estimated at $1.05 billion in September 2019. The purchase price is lower than the startup’s B2B express business revenue of ₹373.3 crores in FY22, up from ₹295 crores in FY21.