Delhivery to acquire supply chain software firm Algorhythm for ₹14.90 cr
Algorhythm offers end-to-end supply chain planning, execution products to FMCG, pharma, steel, auto and telecom sectors.
Delhivery will acquire the Pune-based Algorhythm Tech which delivers intelligent planning & optimization solutions for enterprise supply chain operations for ₹14.90 crore.
The company said the transaction is expected to be completed by Jan 31, 2023. This would be a 100% acquisition post which Algorhythm Tech will operate as a wholly owned subsidiary of Delhivery.
The BSE filing from Delhivery reads, "₹14.90 crore for the acquisition of shares and certain other payments to outgoing management team members. In addition, Delhivery may provide inter-corporate loans to/ infuse additional capital in the company to meet business requirements and settle past arrears and other liabilities. The acquisition will be funded from the proceeds raised through the initial public offer."
Founded in 2003 by Abhaya Borwankar, Ajit Singh, and Sandeep Pendurkar, Algorhythm offers end-to-end supply chain planning & execution products to clients across FMCG, pharma, steel, auto and telecom sectors, through its proprietary Rhythm 3.0 platform.
The supply chain software firm had a turnover of ₹6.4 crore in FY20, 5.9 crore in FY21 and ₹3.6 crore in FY22.
Sandeep Kumar Barasia, executive director and chief business officer, Delhivery, said, "We congratulate Abhaya, Ajit, and Sandeep on building a truly differentiated product offering with a great depth, and breadth of coverage across industry sectors and use cases. Given that technology has been and 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.
These SCM products are increasingly becoming vital for supply chain planning and optimization. And our clients will have the option of availing the benefits of these as part of our Integrated Solutions platform."
Delhivery's Supply Chain Solutions business combines the strength of its warehousing and transportation operations, infrastructure, network, and technology with deep data science and business intelligence capabilities. This enables the company to provide comprehensive and integrated logistics solutions that improve the reliability, speed, and efficiency of its customers' supply chains.
Ajit Singh, co-founder, Algorhythm Tech, added, "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."