Mahindra Logistics Ltd (MLL) on Monday said it will acquire up to 60 per cent stake in last-mile delivery services provider Whizzard for Rs 71.73 crore.
A decision in this regard was taken pursuant to approval by the Investment Committee of the company’s board at a meeting held on February 28, 2022.
The company has…entered into share purchase agreement, share subscription agreement and shareholders’ agreement for acquisition of up to 43,972 equity shares and for subscribing up to 63,200 Series A Compulsorily Convertible Cumulative Preference Shares (CCCPS) of ZipZap Logistics Pvt Ltd (Whizzard), in tranches,” MLL said in a BSE filing.
"The acquisition would result in the company holding, in aggregate, up to 60 per cent of share capital of Whizzard, on a fully diluted basis, it added.
The cost of acquisition is Rs 71.73 crore comprising purchase of up to 43,972 equity shares of Rs 1 each at premium of Rs 6,692.02 per share and subscription of up to 63,200 Series A CCCPS of Rs 100 each at premium of Rs 6,593.02 per CCCPS, it stated.
The acquisition will complement Mahindra Logistics’ existing last-mile delivery business and its electric vehicle-based delivery services, EDeL, MLL said in a statement.
Hyderabad-based Whizzard operates an intra-city distribution network for digital commerce and last-mile delivery.
It enables seamless handling of 60-million packages per year, across diverse segments.
Last-mile delivery and fulfilment continues to see strong tailwinds with increased digital adoption, expanding delivery networks and onset of quick commerce.
This association will enhance and strengthen our existing presence for our customers in e-commerce and other segments, said Rampraveen Swaminathan, MD & CEO, MLL.
Whizzard has built deep capabilities and delivered strong growth till date, he said, adding, we look forward to building the association together and providing customers with integrated solutions.
Whizzard has grown 10 times in the last three years and serves customers with its full stack digital capabilities and micro-distribution centres catering to over 3,000 pin codes, the statement said.Mahindra Logistics with a large customer base has significant strategic advantage for a last-mile delivery company like us. We…look forward to rapidly scaling our business in the coming years, said Ankit Mandhania and Arun Rao, co-founders of Whizzard.