Mahindra Logistics to Acquire Rivigo’s B2B Express Business

Acquisition will accelerate capabilities in B2BExpress Logistics

Mahindra Logistics Ltd. (MLL) and Rivigo Services Private Limited (RSPL) announced that they have reached agreement for purchase of RSPL’s B2B express business by MLL. Under the terms of the agreement, MLL will acquire the express business through a Business Transfer Agreement (BTA), including the customers, team and assets of RPSL’s B2B express business, RSPL’s technology platform and the Rivigo brand. RSPL will continue to own its truck fleet & the rights to the full truck load (FTL) operations.

MLL, one of India’s leading integrated logistics companies, is focused on providing customers supply chain solutions, integrating its 3PL, FTL transportation, warehousing, cross border logistics, last mile and B2B express logistics services. The acquisition will augment MLL’s existing B2B express business leveraging Rivigo’s strong network, technology and process capabilities.

Gurgaon based Rivigo operates a pan India B2B express network, has a robust client base and a full-service technology suite. Rivigo’s B2B express network currently covers over 19,000 pin-codes across the nation. Their 250+ processing centres and branches, spanning an area more than 1.5 million sq. ft. will add significant strength to MLL’s express business capability.

Speaking on the occasion, Rampraveen Swaminathan, MD & CEO, Mahindra Logistics Limited said, “B2B Express Logistics continues to see strong tailwinds as customers focus on deepening delivery networks, enhance digital adoption and invest in agile supply chains. This acquisition will enhance and strengthen our offerings and reach for our customers in the B2B express and PTL space. Team Rivigo has built deep capabilities, and we look forward to building on the strengths as we integrate the businesses. We are excited by the team, as they share a common ethos with a shared focus on empowering drivers & communities”.

Speaking on the occasion, Deepak Garg, CEO of RSPL said “Rivigo has its foundation in the relay full truck load business. Over the years, we have built a strong brand in the PTL / Express services with pan India network and high-quality technology and service backbone. We believe the customers, and employees of our PTL business will benefit greatly from being part of a high-quality, end-to-end Supply chain services company like MLL.”

Indian Startup Rivigo granted USPTO Patent for its Unique Driver Relay System

Indian tech-enabled logistics firm Rivigo announced that it has been granted patent rights by The United States Patent and Trademark Office (USPTO) for its unique driver relay model that uses algorithms to determine availability of drivers for trucks, enabling drivers to return home each day.

Indian tech-enabled logistics firm Rivigo announced that it has been granted patent rights by The United States Patent and Trademark Office (USPTO) for its unique driver relay model that uses algorithms to determine availability of drivers for trucks, enabling drivers to return home each day.

The patented system uses intelligent driver allocation system through algorithms developed by Rivigo to pick the right driver for a duty based on multiple parameters including equitable distribution of driving hours, rest hours, transit hours, etc. The algorithm also considers driver performance on parameters like driving behavior while deciding the final match between truck and “pilot” as every driver is addressed in Rivigo.

“This is yet another milestone for us at Rivigo. Our global first relay model being recognized by the United States Patent and Trademark Office is an endorsement of our pilot-first model predicated on innovation at a technological and human level,” said Gazal Kalra, Co-Founder, Rivigo. “This cutting-edge and disruptive Relay technology will not just bring efficiencies and help streamline the sector through better service to customers, but more importantly will ensure that truck driving becomes a viable job opportunity for pilots as they get to come back home to their families every day.”

“Fleet owners find it extremely difficult to find truck drivers for long distance driving. India has a severe shortage of truck drivers - for every 1000 trucks we have 482 truck drivers. Through this technology, we will offer ‘Relay as a Service’ to fleet owners thereby providing a sustainable and scalable solution to this large and chronic national problem.”

The relay model reduces transit times in long distance transportation. The algorithm and simulation of the system reduces transit time during changeovers by ensuring that the driver is not only available for the next duty but also informed in advance about the upcoming trip. The system also ensures that the driver is performing minimal and only the required checks during the changeover, thus saving time.

Rivigo believes the patented system will not only reduce the transit time but also help decrease the rate of accident on the national highways as truck drivers drive fixed hours and get mandatory rest before next trip is allocated.
About Rivigo

Rivigo is a technology company that is making logistics industry more humane, faster, safer and cost-effective through unique innovative relay model, enabled by strong interplay of technology, data, culture and operations excellence. Since its inception in 2014, Rivigo has emerged as the largest and the fastest growing technology enabled logistics company in India, owning a fleet of over 3000 trucks.

Logistics Tech Firm Rivigo Raises $65 Mn from Existing Investors

Gurgaon-headquartered Rivigo, a technology-enabled logistics startup, has raised a funding of $65 million (~ Rs 445 Crore) in the ongoing series E round led by existing investors Warburg Pincus and SAIF Partners.

The company plans to utilise the money to further strengthen its technology and network coverage. Rivigo has a network coverage with more than 29000 pin codes in India.

After raising a $50 million equity financing in January last year, this is the second successive round of funding that has been led by the same two investors.

In the $150-160 billion Indian road freight market, Rivigo's technological prowess and relay trucking model has ensured the company creates significant value for the sector, says Deepak Garg, Founder and CEO, Rivigo.

The latest fund infusion is part of an ongoing Series E round, Rivigo said in its statement. It will use the proceeds to to further strengthen its technology and network coverage. The January 2018 capital raise was believed to have valued the five-year-old company at about $900-$950 million. It, however, did not disclose its valuation, post the closure of this latest round of funding.

Few days back, Mumbai-headquartered Freight Tiger, a B2B logistics technology startup, had raised $8 million in a funding round led by venture capital firm

Source - Economic Times

SoftBank Again In News, In Talks With Gurgaon Based Startup Rivigo To Invest At Least $100 Mn

The Japanese telecom and internet conglomerate, SoftBank has become the talk of the town in India. The largest investor in India’s homegrown firm, Flipkart, PayTM and Ola has again hit the road as the firm is in talks with a logistic startup, Rivigo Services to invest at least $100 million, according to ETtech report.

ETtech reports that if this investment happens, it could value the startup at nearly $1 billion, while another pegged the potential funding at $200-400 million.

Founded by McKinsey alumni Deepak Garg and Gazal Kalra in 2014, Rivigo is not only the largest buyer of trucks in India but has also launched a slew of technology products over the past year.

The startup has earlier raised more than $100 million in equity and debt financing from the likes of global private equity major Warburg Pincus and stage-agnostic investment firm SAIF Partners. The company was valued at about Rs 2,800 crore, or $440 million when it closed its previous funding round in November.

If we look at the firm’s balance sheet or its $100-billion technology-focused Vision Fund, it is not clear whether SoftBank will invest in Rivigo or not. In past six months, Softbank has closed two massive deals. Earlier in July 2017, SoftBank invested $2.5 billion in the homegrown e-commerce firm, Flipkart marking the biggest private investment in the country’s consumer technology sector. In April, the firm invested $1.4 billion in Noida-based Paytm, valuing it at about $7 billion.

Last week, Softbank invested $1.1 billion in Indian origin entrepreneur’s biotech startup, Roivant Sciences. With these investments, it is clear that SoftBank is ramping up investments in India at a rapid pace.

Warburg Pincus Invests $75M in Rivigo, a Technology Driven Logistics Company

Rivigo, a technology driven logistics company, today announced that an affiliate of Warburg Pincus, a leading global private equity firm focused on growth investing, has invested $75 million in the company for a minority stake. This is the fourth and largest round of capital raised by the Company, with previous capital coming from a number of investors including SAIF Partners and Singapore Post.

Rivigo, headquartered in Gurgaon, was founded in 2014 by former Mckinsey& Co. consultants Deepak Garg, an alumnus of IIT Kanpur and IIM Lucknowand Gazal Kalra, an alumnus of Stanford and Harvard. The Company pioneered the unique “relay” operating model which reduces the transit time of trucks in India by 50-70 per cent compared to typical truck operators, while significantly enhancing the safety and lifestyle of truck drivers. Rivigo leverages data, technology and IOT extensively to solve real challenges in logistics. In a short span of two years, Rivigo has grown rapidly,and offers a wide range of solutions including full-truck load, part truck-load and cold chain to clients across major industry verticals such as e-commerce, FMCG, automotive, retail and pharmaceuticals.The company currently owns and operates over 2000 trucks and has a pan India network across 150 locations.

Deepak Garg, Founder and Chief Executive Officer of Rivigo said, “We are delighted to welcome Warburg Pincus as our partner, and look forward to leveraging their global expertise and network in logistics. The infusion of capital will help us scale up our various service offerings across India, and importantly, accelerate our investment in technology and talent. This funding will support our aspiration of becoming the largest logistics company in India by 2020.”

Commenting on the transaction, Viraj Sawhney, Managing Director of Warburg Pincus said, “We are excited by Rivigo’s growth prospects and its potential to disrupt the Indian trucking industry, which is by far the largest segment of logistics in India. The company is delivering a fundamentally superior proposition for customers and truck drivers by deploying a unique operating model, enabled by the smart use of technology and analytics. The prospects are likely to be further enhanced upon implementation of GST. We are excited to partner with a young and energetic management team that has executed impressively to date, and possesses a strong culture of innovation, and look forward to utilising our strong global logistics experience to support the management in their growth plans.”

Deepak Gaur, Managing Director of SAIF Partners and board member of Rivigo said, “Rivigo has grown exponentially over the last 2 years to disrupt a massive logistics market in India. We are pleased to have Warburg Pincus on board to help further accelerate our journey and deepen our market presence.”

Image : Deepak Garg, Founder and Chief Executive Officer of Rivigo