Mahindra to acquire Rivigo’s B2B express business
Mahindra Logistics has acquired the business-to-business (B2B) express unit of logistics startup Rivigo in a slump sale for Rs 225 crore. Rivigo operates in two key business segments - full truck load and B2B express business. The acquisition is expected to augment Mahindra Logistics’ existing B2B express business by using Rivigo's strong network, technology and process capabilities.
Under the agreement, Mahindra Logistics will acquire the express business through a business transfer agreement (BTA), including the customers, team, and assets of Rivigo’s B2B express business, its technology platform, and the overall brand.
Rampraveen Swaminathan, MD & CEO, Mahindra Logistics, said, “B2B Express Logistics continues to see strong tailwinds as customers focus on deepening delivery networks, enhancing digital adoption and investing in agile supply chains. This acquisition will enhance and strengthen our offerings and reach for our customers in the B2B express and PTL (partial truck load) space.”
In FY21, its total revenue was Rs 634 crore, and the B2B express business constituted Rs 295 crore of that. During FY22, the turnover of Rivigo’s B2B express business was Rs 371.3 crore, less than the pre-Covid-19 pandemic turnover of Rs 528.5 crore in FY20.
Deepak Garg, CEO of Rivigo, said, “Rivigo has its foundation in the relay full truckload business. Over the years, we have built a strong brand in the PTL/express services with a 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 Mahindra Logistics.”
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