Mahindra Logistics expands into last-mile delivery with ZipZap Logistics acquisition

Mahindra Logistics Limited (MLL), a subsidiary of Mahindra Group, is set to acquire up to 60 per cent of share capital of ZipZap Logistics Private Limited (Whizzard) in a strategic move to strengn its presence in last-mile delivery and fulfillment services, according to an exchange filing by company.

initial announcement, me on March 1, 2022, detailed MLL's plans to acquire 60 per cent of Whizzard's share capital by November 30, 2023. However, in an update on November 29, 2023, MLL revealed that certain conditions and precedents for completion of investment are in progress, leing to an extension of timeline to December 31, 2023.

This acquisition builds on MLL's earlier investments, with company completing acquisition of 36 per cent of Whizzard's share capital on April 8, 2022. investment includes equity shares and Series A Compulsorily Convertible Cumulative Preference Shares (CCCPS).

ZipZap Logistics Private Limited, hequartered in Hyderab, operates as Whizzard, a tech-enabled last-mile delivery logistics company. Whizzard boasts a turnover of Rs 88.38 crores for financial year ending March 31, 2021.

acquisition aligns with MLL's growth strategy, aiming to enhance its capabilities in last-mile delivery and fulfillment services. Whizzard's expertise, with over 125 micro-distribution centers catering to 3000+ pin codes across India, complements MLL's focus on technology-based last-mile services.

total cost of acquisition stands at Rs 71.73 crores, comprising purchase of equity shares and subscription of CCCPS. consideration will be paid in cash.

transaction is not classified as a Related Party Transaction in its first tranche, but Whizzard is expected to become a Related Party of MLL after completion of this phase.

Rajeev Piramal, Vice Chairman and Managing Director of PLL, expressed excitement about new growth phase, unlocking immense value present in real estate sector.

With this move, Mahindra Logistics positions itself as a key player in evolving landscape of last-mile delivery, leveraging Whizzard's extensive distribution network and digital capabilities. extension of timeline reflects commitment to ensuring all conditions for a successful investment are met, reinforcing strategic significance of this acquisition for Mahindra Logistics.