Delhivery acquires Algorhythm Tech startup

Delhivery, a provider of logistics services, recently announced it would buy Algorhythm Tech Pvt. Ltd., a company based in Pune that provides planning and optimization solutions for large-scale supply chain operations.

For the purchase of shares and other payments to the departing management team, Delhivery would spend Rs 14.9 crore, the business stated in a regulatory filing.

The money collected by Delhivery’s initial public offering would be used to pay for the entire transaction. Algorhythm Tech will function after the acquisition is finished as a fully owned subsidiary of Delhivery. The transaction is anticipated to close by January 31, 2023, according to the business.

Abhaya Borwankar, Ajit Singh, and Sandeep Pendurkar founded Algorhythm in 2003. Through its patented Rhythm 3.0 platform, Algorhythm provides end-to-end supply chain planning and execution products to clients across the FMCG, pharma, steel, auto, and telecom sectors.

Algorhythm Tech

Network design, demand planning, sales and operations planning (S&OP), logistics planning, and route planning are among the services it provides in the area of supply chain. Along with factory planning and scheduling, production execution systems, and last mile sales route planning, it also provides solutions for sales and distribution.

Algorhythm generated a turnover of Rs 3.6 crore in FY22, according to Delhivery’s records. According to the documents, Delhivery’s supply chain services business can benefit from the technologies developed by the Pune-based company’s supply chain division both as a value-added service for its clients and as a means of enhancing service delivery efficiency.

Given that technology has been and will continue to be our main point of differentiation in the marketplace, Algorhythm Tech’s SCM software products will bring value to our supply chain solutions offering while also promoting cost-effective service delivery. Supply chain planning and optimization are growing more and more dependent on these SCM tools. And as part of our Integrated Solutions platform, our clients will have the choice to take use of these advantages, according to Sandeep Kumar Barasia, Executive Director and Chief Business Officer of Delhivery.

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