Mahindra to buy Rivigo’s B2B express biz

Mahindra Logistics announced in an exchange filing that it will acquire Rivigo Services Pvt. Ltd.'s B2B express delivery business from the unicorn startup, along with all rights, title, and beneficial ownership and interest, in an all-cash deal valuing the company at ₹225 crores.

According to media sources, Mahindra's move will assist cash-strapped Rivigo, which was looking for possible purchasers after the pandemic-related business setbacks, to run its other activities. In September 2019, the startup's final valuation was $1.05 billion. The startup's B2B express business generated revenues of 373.3 crores in FY22, up from 295 crores in FY21, which is less than the purchase price.

The startup's B2B sector includes over 250 processing centers and branches and spans a network of 19,000 pin codes across the nation. "The acquisition will broaden and deepen our client reach in the B2B express and PTL (partial truckload) space, "Mahindra Logistics' managing director and chief executive, said. To expand its products, Mahindra will make use of Rivgio's robust network, full-service technology suite, and process skills. As customers prioritize enhancing digital adoption, increasing delivery networks, and investing in agile supply chains, B2B Express Logistics continues to have strong tailwinds "he further added.