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Mahindra Logistics Ltd (MLL), the third-party logistics company and part of Mahindra Group, has acquired the B2B express business of logistics unicorn Rivigo for a consideration of Rs 225 crore.

In a communication to the stock exchanges, Mahindra Logistics said the acquisition of the B2B express business of Rivigo was on a ‘slump sale’ basis. This B2B express business of Rivigo had registered a revenue of Rs 371.3 crore for FY 2021-22.

The acquisition will include customers, the team, assets, the technology platform, and the Rivigo brand. According to Rivigo, it will continue to own its truck fleet and the rights to the full truck load (FTL) operations.

Founded in 2014, Rivigo, which is backed by the likes of Elevation Capital and Warburg Pincus, has been struggling for some time and there were reports that it was in the market scouting for potential buyers.

The financial performance of Rivigo has also been uneven, as indicated by the earnings of its B2B express business. This segment registered a revenue of Rs 528.5 crore in FY20, which dropped to Rs 295 crore in FY21 and rose to Rs 371.3 crore in FY22.

According to Mahindra Logistics, the acquisition will augment its existing B2B express business leveraging Rivigo’s network of over 250 processing centres and branches, spanning an area of more than 1.5 million sq ft, technology and process capabilities and will drive synergies in network, team and customer service.

On the acquisition, Rampraveen Swaminathan, MD and 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. Team Rivigo has built deep capabilities, and we look forward to building on the strengths as we integrate the businesses.”

The services of Mahindra Logistics include supply chain solutions, FTL transportation, warehousing, cross-border logistics, last-mile services, and B2B express logistics services.

Rivigo CEO Deepak Garg said, “Rivigo has its foundation in the relay full truck load 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.”