Mumbai : Mahindra Logistics Ltd. (MLL), one of India’s largest Third-Party Logistics (3PL) solution providers, today announced its acquisition of majority stake in ZipZap Logistics Private Limited, a last-mile logistics service provider operating under its brand ‘Whizzard’ for cash consideration of Rs.71.73 crore.
The acquisition is comprising of Purchase of up to 43,972 of Equity Shares of Rs. 1 each at premium of Rs. 6,692.02 per share. b. Subscription up to 63,200 Series A Compulsory Convertible Cumulative Preference Shares (“CCCPS”) of Rs. 100 each at premium of Rs. 6,593.02 per CCCPS. The acquisition is targeted to be completed by November 2023.
The acquisition will complement MLL’s existing last mile delivery business and EDeL, its Electric Vehicle (EV) based delivery services. Expanding technology based last mile services is an integral part of MLL’s growth strategy and this transaction will help accelerate addition of technology, geographical coverage and operational capabilities. Hyderabad based Whizzard operates an intra-city distribution network for digital commerce and last mile delivery. Whizzard currently enables seamless handling of 60 million packages per year, across diverse segments. Led by a strong founding team of Ankit Madhania and Arun Rao, Whizzard has grown 10X in the last three years and serves customers with its full stack digital capabilities and micro-distribution centres catering to 3000+ pin codes.
. “Last Mile Delivery & Fulfilment continues to see strong tailwinds with increased digital adoption, expanding delivery networks and onset of quick commerce. This association will enhance and strengthen our existing presence for our customers in e-commerce and other segments. The Whizzard team has built deep capabilities and delivered strong growth till date. We look forward to building the association together and providing customers integrated solutions”Rampraveen Swaminathan, MD & CEO, Mahindra Logistics Limited said.