Mahindra Logistics pays Rs 225 crore to acquire Rivigo's B2B express business.

Mahindra Logistics pays Rs 225 crore to acquire Rivigo's B2B express business.

On a slump-sale basis, Mahindra Logistics Ltd. will buy Rivigo Services business-to-business express cargo service unit.

Mahindra Logistics, an integrated third-party logistics (3PL) service provider that specializes in supply chain management and is part of the Mahindra Group, has purchased Rivigo's B2B Express business.

Mahindra Logistics Ltd. (MLL) announced a 225-crore amount for the acquisition of Rivigo Services' B2B express division in a stock exchange filing on Monday. The change will take effect on October 1.

According to the terms of the agreement, MLL would acquire Rivigo's business, including the clients, team and assets, the B2B express business, technology platform, and the Rivigo brand, through a Business Transfer Agreement (BTA).

According to the company, the acquisition would strengthen MLL's existing B2B express business by leveraging Rivigo's network, technology, and process capabilities. Rivigo, situated in Gurgaon, covers 19,000 pin codes across the country. According to the report, Rivigo's B2B express division generated 295 crores in revenue during FY21.

The B2B express firm was acquired "on a slump sale basis, for a flat sum payment of Rs. 225 crores," according to a BSE filing. Rivigo operates in two major business segments: full truckload and business-to-business express. Rivigo's B2B express business earned Rs 371.3 crore in FY2022, Rs 295 crore in FY2021, and Rs 528.5 crore in FY2019.

A slump sale means when a corporation sells an undertaking without considering the worth of individual assets and liabilities.

Rivigo is a technology company that is constructing India's material movement pipeline through a worldwide unique innovation of relay trucking, made possible by a powerful interplay of technology, data, culture, and operational excellence. Rivigo's mission is to make logistics more human, faster, safer, and more cost-effective.

Rivigo is employing a novel relay mechanism to solve a real and basic problem of truck driver scarcity. Rivigo's objective is to ensure that each truck driver, or pilot, spends less time away from his family, allowing him to live a life of meaning, dignity, and respect.

With an industry-first driver relay model and cutting-edge technology, Rivigo has been able to continually supply clients with unrivalled delivery speeds and reliability.

Rivigo uses technology to solve the complete range of logistics sector concerns, whether they are complicated problems like fuel analytics, route planning, human behaviour analysis, or pure-drudgery removal activities like auto-alert systems and intelligent decision systems. The company’s focus on technology has resulted in simple, intuitive technological products that have gained quick and easy adoption by trucking ecosystem stakeholders.