Delhivery announces acquisition of supply chain logistics company Algorhythm Tech
- ByStartupStory | December 20, 2022
Logistics firm Delhivery announced today that it would acquire Algorhythm Tech for a cash consideration of ₹ 14.90 crore, which is subject to compliance with Sebi regulations. This would be a 100% acquisition, post which Algorhythm Tech will operate as a wholly-owned subsidiary of Delhivery Limited. The transaction is expected to be completed by January 31, 2023, the company confirmed.
Algorhythm Tech is a cloud-based and artificial intelligence-based platform for manufacturing, supply chain and sales optimization. Offering end-to-end supply chain planning and execution products to clients in FMCG, pharmaceutical, steel, auto and telecom through its proprietary Rhythm 3.0 platform. It is a Pune based company, founded in 2003 by Abhaya Borwankar, Ajit Singh, and Sandeep Pendurkar which had a turnover of Rs 3.6 crore in FY22.
“Given that technology has 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,” said Sandeep Kumar Barasia, executive director and chief business officer of Algorhythm.
“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, co-founder of Algorhythm Tech. The statement also said Algorhythm Tech’s supply chain software tools are relevant to Delhivery’s supply chain services business — both as a value added service to Delhivery’s customers, and to drive cost optimisation in service delivery.
Delhivery is an Indian logistics and supply chain company, based in Gurugram. It was founded in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati. The company has over 85 fulfillment centers, 24 automated sort centers, 70 hubs, over 7,500 partner centers, and over 3,000 direct delivery centers, as of 2021.
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