Mahindra Logistics to buy 60% stake in logistics service provider Whizzard
Mahindra Logistics Ltd. (MLL), an Indian third-party logistics (3PL) solution provider, has acquired a stake of 60% in ZipZap Logistics, a last-mile logistics service provider that operates under the brand ‘Whizzard’.
The consideration for the acquisition is INR 71.73 crores to be paid in cash.
Founded in 2018, the Hyderabad-based Whizzard runs an intracity distribution network for digital commerce and last mile delivery services.
The last-mile logistics service provider had a turnover of INR 88.38 crores for the financial year ended 31 March 2021.
Whizzard is said to serve more than 3,000 pincodes across India with its full stack digital capabilities and more than 125 micro distribution centres. Currently, Whizzard is claimed to handle 60 million packages per annum, across diverse segments.
Ankit Mandhania and Arun Rao — co-founders of Whizzard said: “Mahindra Logistics is one of the most respected logistics companies in India. We believe that being downstream to this and respected brand with a large customer base is significant strategic advantage for a lastmile delivery company like us.
“We are thrilled to join hands with Mahindra Logistics and look forward to rapidly scaling our business in the coming years.”
According to Mahindra Logistics, the acquisition will complement the company’s existing last mile delivery business and electric vehicle (EV) based delivery services under EDeL.
The Indian 3PL solution provider stated further that expanding technology based last mile services is an integral part of its expansion strategy and the deal will help expedite addition of geographical coverage, technology, and operational capabilities.
Rampraveen Swaminathan — MD and CEO of Mahindra Logistics said: “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.”
The deal is expected to close by 30 November 2023.