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

Mahindra Logistics Limited (MLL), a subsidiary of the Mahindra Group, is set to acquire up to 60 per cent of the share capital of ZipZap Logistics Private Limited (Whizzard) in a strategic move to strengthen its presence in the last-mile delivery and fulfillment services, according to an exchange filing by the company.The initial announcement, made 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 the completion of the investment are in progress, leading to an extension of the timeline to December 31, 2023.This acquisition builds on MLL's earlier investments, with the company completing the acquisition of 36 per cent of Whizzard's share capital on April 8, 2022. The investment includes equity shares and Series A Compulsorily Convertible Cumulative Preference Shares (CCCPS).ZipZap Logistics Private Limited, headquartered in Hyderabad, operates as Whizzard, a tech-enabled last-mile delivery logistics company. Whizzard boasts a turnover of Rs 88.38 crores for the financial year ending March 31, 2021.The 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.The total cost of the acquisition stands at Rs 71.73 crores, comprising the purchase of equity shares and the subscription of CCCPS. The consideration will be paid in cash.The 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 the completion of this phase.Rajeev Piramal, Vice Chairman and Managing Director of PLL, expressed excitement about the new growth phase, unlocking the immense value present in the real estate sector.With this move, Mahindra Logistics positions itself as a key player in the evolving landscape of last-mile delivery, leveraging Whizzard's extensive distribution network and digital capabilities. The extension of the timeline reflects the commitment to ensuring all conditions for a successful investment are met, reinforcing the strategic significance of this acquisition for Mahindra Logistics.

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

ZipZap Logistics Private Limited, headquartered in Hyderabad, operates as Whizzard, a tech-enabled last-mile delivery logistics company

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