In a slump sale for Rs 225 crore, Mahindra Logistics bought the business-to-business (B2B) express division of logistics startup Rivigo.
According to a regulatory filing to the BSE, the transaction is anticipated to conclude on or before November 1.
According to the terms of the deal, Mahindra Logistics would acquire the express company through a business transfer agreement (BTA), together with the clients, personnel, and resources of Rivigo’s B2B express business, as well as its technological infrastructure and overall brand.
Due to investors’ heightened caution as a result of the prolonged economic recession, the unicorn logistics company has had difficulty raising new money.
A slump sale occurs when a business sells a project without accounting for the value of the project’s component assets and liabilities.
Full truck load (FTL) and B2B express business are the two main business categories in which Rivigo works.
According to the report, the B2B express business contributed Rs 295 crore of the company’s total FY21 revenue, which was Rs 634 crore.
Rivigo’s B2B express division generated a turnover of Rs 371.3 crore in FY22, which was smaller than the division’s FY20 pre-Covid-19 pandemic sales of Rs 528.5 crore.