Mahindra Logistics, a subsidiary of the Mahindra Group, announced on Monday that it has purchased a 60% ownership in ZipZap Logistics, a Hyderabad-based last-mile delivery logistics business, for Rs 71.73 crore.
“Mahindra Logistics has entered into the share purchase agreement, share subscription agreement and shareholders’ agreement for the acquisition of up to 43,972 equity shares and for subscribing up to 63,200 Series A compulsorily convertible cumulative preference shares of ZipZap Logistics (Whizzard) in tranches,” it said in a regulatory filing.
The deal entails the purchase of up to 43,972 equity shares of Rs 1 each at a premium of Rs 6,692.02 per share, as well as the subscription of up to 63,200 Series A compulsory convertible cumulative preference shares (CCCPS) of Rs 100 each at a premium of Rs 6,593.02 per CCCPS, for a total value of Rs 71.73 crore.
“The objective of the acquisition is to enhance Mahindra Logistics’ presence and capabilities in the last-mile delivery and fulfilment services for its customers,” the company said.
The firm’s development plan includes expanding technology-based last-mile services, and this deal will assist speed the addition of technology, geographic coverage, and operational skills, according to the company. Tech-enabled ZipZap runs an intracity distribution network for digital commerce and last-mile delivery services under the Whizzard brand.
