Delhivery announced on Tuesday that it will acquire Pune-based supply chain software firm Algorhythm Tech for Rs 14.9 crore in cash in order to expand its integrated supply chain solutions offering.
The transaction is expected to be completed by January 2023, after which Algorhythm Tech will operate as a wholly-owned subsidiary of the Gurugram-based logistics firm.
Abhaya Borwankar, Ajit Singh, and Sandeep Pendurkar founded Algorhythm Tech in 2003 to provide intelligent planning and optimization solutions for enterprise supply chain operations.
The acquisition enables Delhivery to improve its supply chain business, providing value-added services to customers while reducing costs. In December 2021, the company purchased California-based Transition Robotics, months before its market debut. It previously purchased Spoton Logistics in August 2021.
Delhivery would fund the acquisition with proceeds from its initial public offering in May of this year, when it raised Rs 5,235 crore.
The company offers a comprehensive range of logistics services, including express parcel transportation, freight, cross-border, supply chain, and technology services, across a network of over 18,400 pin codes in the country. It has over 28,000 customers, including large and small e-commerce players.
Through its proprietary platform, Algorhythm Tech serves clients in the fast-moving consumer goods, pharma, steel, auto, and telecom industries, providing end-to-end solutions. The company, which was based in India, reported a turnover of Rs 3.6 crore in FY22, a decrease from Rs 5.9 crore in FY21.
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