The business-to-business (B2B) express unit of logistics startup Rivigo has been acquired by Mahindra Logistics for Rs 225 crore in a slump sale. This deal would most likely be closed on or before 01st November according to a regulatory filing to the BSE.
About Rivigo Business
Rivigo was started in the year 2014 by Deepak Garg and Gazal Kalra, who were working as consultants at Mckinsey. Their idea was to create a relay truck model in which no individual would have to drive for more than four-to-five hours continuously and would return home the same day. The mobile application of Rivigo makes the life of drivers easier. By using technology, Rivigo has changed the way the logistics industry works.
Mahindra Logistics and Rivigo have reached an agreement to undertake a business transfer agreement in which Mahindra Logistics would acquire customers, team, and assets of Rivigo’s B2B express arm. Rivigo had discussions with Flipkart, an e-commerce marketplace, and Firstcy, an omnichannel baby products retailer recently for a potential sale but that did not happen.
Rivigo was not able to receive the funds and now this slump sale is their decision. A slump sale means the company does not consider the value of individual assets and liabilities while selling its undertaking.
“This acquisition will enhance and strengthen our offerings and reach for our customers in the B2B express and PTL (partial truckload) 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,” This was stated by Rampraveen Swaminathan, Mahindra Logistics MD, and CEO