Logistics services start-up Rivigo Services Private Limited (RSPL) finds a buyer in Mahindra Logistics (MLL) as both companies on September 26 announced reaching an agreement to purchase the former’s B2B express business. Under the agreement, MLL will acquire the express business through a Business Transfer Agreement (BTA), which includes the customers, team and assets of RPSL’s B2B express business, RSPL’s technology platform and the Rivigo brand.
RSPL will continue to own its truck fleet and the rights to the full truck-load (FTL) operations.
The acquisition will help MLL augment its existing B2B express business leveraging Rivigo’s strong network, technology and process capabilities. MLL is an integrated logistics company focused on providing customers supply chain solutions, integrating its 3PL, FTL transportation, warehousing, cross-border logistics, last mile and B2B express logistics services.
This announcement comes a month after Rivigo was in talks for potential sale to e-commerce giant Flipkart and multi-channel baby products brand FirstCry, following troubles due to prolonged slowdown, as per media reports. Despite being a unicorn, Rivigo also raised a $2 million round in Series H last month led by Elevation Capital and Warburg Pincus affiliate Spring Canter Investment.
Gurugram-based Rivigo operates a pan-India B2B express network, covering over 19,000 pin-codes across the nation. They have 250+ processing centres and branches, spanning an area of more than 1.5 million sq. ft.
Rampraveen Swaminathan, MD & CEO, Mahindra Logistics Limited said, “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."
He added, "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”.
Deepak Garg, CEO of RSPL 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 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.”
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