Mahindra Logistics is buying Rivigo Services Private Limited's B2B express division for Rs 225 crore. Mahindra Logistics will acquire RSPL's express customers, workforce, assets, technology platform, and Rivigo brand.
Unicorn surface logistics Rivigo was seeking for a merger and acquisition agreement because it couldn't raise external funding. Cash-strapped logistics unicorn liquidated 80% of its truck fleet and failed to adapt to an asset-light approach.
Rivigo's B2B express network has 25 processing branches and serves 19,000 pin codes. Its B2B express segment contributed 58% or Rs. 371.3 crore to FY21 revenue. Rivigo's operating revenue fell 40% to Rs 634 crore in March 2021.
Unicorn sold its B2B express division for less than its FY21 sales, indicating a distressed deal. Rivigo is the first unicorn to shake in this financing winter of layoffs, value corrections, shutdowns, and consolidations.
Rivigo was founded in 2014 by Deepak Garg and Gazal Kalra and was formerly recognised as a disruptor in the B2B logistics industry. It's raised $300 million in stock and loan investment.
Full-stack logistics organisations were hit most by the pandemic. Rivigo's difficulties intensified post-pandemic, according to specialists. The company's fixed expenditures caused it to lose clients even after it switched to an asset-light approach. This has led Rivigo to their current situation.