Mahindra Logistics Ltd (MLL) today announced that it has reached an agreement with Rivigo Services Private Limited (RSPL) to acquire the latter’s B2B express business for INR 225 crore. The deal is expected to close on or before November 1, according to a regulatory filing to the BSE.
Under the terms of the agreement, MLL will acquire the express business through a Business Transfer Agreement (BTA), including the customers, team and assets of Rivigo’s B2B express business, RSPL’s technology platform and the Rivigo brand. RSPL will continue to own its truck fleet & the rights to the full truckload (FTL) operations.
This acquisition will augment Mahindra Logistics’ existing B2B express business leveraging Rivigo’s strong network, technology and process capabilities. Rivigo’s B2B express network currently covers over 19,000 pin codes across the nation. Their 250+ processing centres and branches, spanning an area of more than 1.5 million sq. ft. will add significant strength to MLL’s express business capability.
B2B Express Logistics continues to see strong tailwinds as customers focus on deepening delivery networks, enhance digital adoption and invest in agile supply chains. 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.”~ Rampraveen Swaminathan, MD & CEO, Mahindra Logistics Limited
Last month Logistics Insider reported that Rivigo may or may not merge its operations with either Flipkart’s logistics arm Ekart or omnichannel retailer First Cry’s logistics unicorn XpressBees. The logistics tech unicorn has struggled to raise fresh funds as investors turn skittish due to the ongoing economic slowdown, therefore, went for a slump sale to MLL. A slump sale is when a company sells an undertaking without taking the value of individual assets and liabilities into account.
Rivigo has its foundation in the relay full truck load business. Over the years, we have built a strong brand in the PTL / Express services with pan India network and high-quality technology and service backbone. We believe the customers, and employees of our PTL business will benefit greatly from being part of a high-quality, end-to-end Supply chain services company like MLL.”~ Deepak Garg, CEO, Rivigo
Last year, Mahindra Logistics announced a 100% equity capital acquisition of Meru Cabs, from its parent Mahindra & Mahindra (M&M). The all-cash deal estimated around Rs 1,305.9 crore which included stake buys of the three arms of Meru Travel Solutions Private Limited helped MLL to consolidate and expand its business in the enterprise mobility space.