Delhivery to buy supply chain firm Algorhythm Tech for Rs.14.9 crore

Delhivery logistics provider has announced that it will acquire Pune-based Algorhythm Tech Pvt. Ltd. which provides planning and optimization solutions for supply chain operations to businesses.

The company said in a regulatory filing that Delhivery will pay Rs 14.9 crore for the share purchase and some other payments to outgoing management team members.

The acquisition will be financed with 100 percent of the proceeds raised through Delhivery's initial public offering. After completion of the transaction, Algorhythm Tech will operate as a wholly owned subsidiary of Delhivery. The company said that the transaction is expected to be completed on January 31, 2023.

Founded in 2003 by Abhaya Borwankar, Ajit Singh and Sandeep Pendurkar, Algorhythm provides end-to-end supply chain planning and execution products to clients in the consumer goods, pharmaceutical, steel, automotive and telecommunications industries through of its Rhythm 3.0 platform.

In supply chain, its offerings include network design, inventory planning, demand planning, sales and operations (S&OP) planning, logistics planning, and route planning. It also offers sales and distribution solutions including last-mile sales route planning and last-mile delivery planning along with plant planning, scheduling, and manufacturing execution systems.

As per Delhivery filings, Algorhythm had a turnover of Rs 3.6 crore in FY22. The filings said that the Pune-based company's supply chain software tools are relevant to the business of Delhivery supply chain services, as a value-added service to its customers and to drive cost optimization in the provision of services.