SUMMARY
The acquisition will be completed by 31st Jan 2023. Further, as part of the deal, Algorhythm Tech will become a wholly-owned subsidiary of Delhivery
Algorhythm offers logistics solutions to companies operating in FMCG, pharmaceutical, steel, automobile and telecom sectors
Delhivery claims to offer services to more than 28K customers across 18,400+ pin codes and has fulfilled 1.7 Bn+ shipments to date
Logistics unicorn Delhivery has acquired 100% stake in the Pune-based startup Algorhythm Tech for an undisclosed amount.
The acquisition will be completed by 31st Jan 2023. Further, as part of the deal, Algorhythm Tech will become a wholly-owned subsidiary of Delhivery.
Founded in 2003 by Abhaya Borwankar, Ajit Singh, and Sandeep Pendurkar, Algorhythm offers logistics solutions to companies operating in FMCG, pharmaceutical, steel, automobile and telecom sectors.
“Delhivery has made great strides to emerge as the largest logistics provider in India in a decade and we can think of no better team or company to work with to accelerate our joint vision for the future,” said Ajit Singh, cofounder of Algorhythm Tech.
In 2010, Algorhythm received an undisclosed amount of funding from Mumbai Angels.
Meanwhile, logistics unicorn Delhivery offers a suite of logistics services such as express parcel transportation, PTL and TL freight, cross-border, supply chain, and technology services, among others.
Delhivery claims to offer services to more than 28K customers across 18,400+ pin codes and has fulfilled 1.7 Bn+ shipments to date.
“Given that technology continues to be our core business differentiator, Algorhythm Tech’s SCM software products will enhance our supply chain solutions offering with value-added services and also drive cost optimization in service delivery,” said Sandeep Kumar Barasia, executive director and chief business officer of Delhivery.
Delhivery said that it uses data science and business intelligence to combine its supply chain business with warehousing and transportation operations, infrastructure, network and technology.
In the second quarter of FY23, Delhivery narrowed its losses by 60% from INR 254.1 Cr to INR 635 Cr in Q2 FY22. Meanwhile, its total income grew by 23% to INR 1,883.3 Cr in Q2 FY23 as compared to INR 1,528.1 Cr income recorded in Q2 FY22.
A few days back, it also went live on the Centre’s Open Network For Digital Commerce (ONDC) and began offering intercity express parcels via the ONDC platform.
Earlier, Delhivery asserted that it offers sea and air cargo shipping services to more than 220 countries and operates more than 95 warehouses in 35+ cities.
According to a Statista report, India’s logistics sector was pegged at nearly $250 Bn in the financial year 2021 (FY21). The sector is expected to become a $380 Bn space by 2025, growing at a CAGR of 10-12% by the forecasted period.
