Mahindra Logistics has acquired the business-to-business (B2B) express unit of logistics startup Rivigo in a slump sale for Rs 225 crore.
The deal is expected to close on or before November 1, according to a regulatory filing to the BSE.
Mahindra Logistics will acquire the express business through a business transfer agreement (BTA), including the customers, team, and assets of Rivigo’s B2B express business, its technology platform, and the overall brand.
The logistics tech unicorn has struggled to raise fresh funds as investors turn skittish due to the ongoing economic slowdown, Economic Times reported.
In FY21, its total revenue was Rs 634 crore, and the B2B express business constituted Rs 295 crore of that, according to the filing.
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During FY22, the turnover of Rivigo's B2B express business was Rs 371.3 crore, less than the pre-Covid-19 pandemic turnover of Rs 528.5 crore in FY20.
Valued at over $1 billion when it last raised funding, the company will continue to own its truck fleet and the rights to the FTL operations.
The deal marks a significant value erosion for the company as the valuation at which Mahindra Logistics has acquired Rivigo's B2B express business is less than 1x multiple of its revenue.
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