Mahindra Logistics (MLL), one of India’s largest Third-party logistics (3PL) solution providers, today announced the acquisition of a strategic stake in Transtech Logistics, also known as ShipX. The acquisition is expected to be completed by August 31, 2020. According to multiple media oytlets, the acquisition deal was done at Rs.7 Crores.
This acquisition comes within a couple of months after Tata Motors Ltd picked up 26% stake in TruckEasy, an another Bangalore-based startup in logistics space. With that, Tata motors, the flagship of the $100-billion Tata Group, marked its first ever stake-purchase in a domestic startup.
About ShipX, it is a SAAS (Software as a Service) based Transport Management Solution (TMS) platform that serves the supply chain automation needs for 3PLs, shippers and transporters.
Shipx is founded by a mature and experienced team including – Amar Kalale, Maxin Samuel, Bharat Ramanath and
Venkatraman Mahadevan. These were part of a Boston-based supply chain fulfillment company that had been incubated by Infosys.
ShipX has been working with MLL for over 3 years and has been enabling transportation solutions. This acquisition will help MLL to increase end-to-end digitization and bring in operational efficiencies.
Mr. Pirojshaw Sarkari, CEO – Mahindra Logistics, said, “Logistics in future will be more technology driven – both in terms of our own operations, as well as interfaces with our customers and business partners. With our asset light business model, we are already like a ‘platform’. The strengthening of our relationship with Shipx opens up a new opportunity to take this to the next level.�
Mr. Amarnath Kalale, Co-Founder of Transtech, said “MLL has been our most valuable customer for more than 3 years. This investment will help us in developing more product features and strengthening the organization”. Prior to Shipx, Kalake was also the co-founder Yantra solutions, a Boston based supply chain solution provider. Amar has more than 20 years of experience in providing technology solutions for logistics and supply chain problems. Amar has Bachelor’s degree in Engineering and Masters in Computer Science. .
It may be recalled that, Mahindra, which is an umbrella firm of Mahindra Logistics, had picked up a 16% stake in Bengaluru-based self-drive car rental startup Zoomcar for $27.6 million as part of a Series C round of funding worth $40 million (Rs 256 crore), in February this year.
In the same month, Mahindra had also made an investment of about $1 million in Mumbai-based connected car IoT-device making startup Carsense (formerly Carnot) for 22.9% stake in Carnot Technologies Pvt Ltd, the parent company of brand name Carsense.