For ₹15 crore, supply chain software developer Algorhythm Tech in Pune will be purchased by logistics company Delhivery.
Delivery said, Algorhythm Tech would function as a fully owned subsidiary of the business upon the completion of the transaction, which is anticipated to be completed by January 31, 2023. Algorhythm, founded in 2003, provides end-to-end supply chain planning and execution products to clients in a range of industries, including FMCG, pharmaceuticals, steel, autos, and telecom.
According to Delhivery, Algorhythm’s supply chain software tools are important for driving cost minimization in service delivery as well as providing clients with value-added service.
Delhivery may offer inter-corporate loans or invest even more cash into the firm to satisfy business requirements and clear past-due accounts and other liabilities, in addition to purchasing 100% of the company’s shares and making certain other payments to departing management team members. The funds collected during the initial public offering earlier this year will be used to pay for the acquisition.
The shipment volumes of Delhivery are anticipated to grow by 18-30% in 2023. In FY22, the shipment volume was 101% to 58.2 Cr packages. Also, there was a growth of 63% to ₹7,241Cr.
Delhivery said it remained positive about the sector’s long-term prospects even though e-commerce penetration in India, where it generates the majority of its business, is likely to develop more slowly this year due to macro headwinds.