Rivigo, established in 2014 by Deepak Garg and Gazal Kalra, has been a transformative force in India’s logistics sector. The company offers trucking services across various industries, including apparel, e-commerce, automotive, frozen and processed foods, and FMCG. Over the years, Rivigo has built a reputation for its innovative approaches and expansive network.
Acquisition by Mahindra Logistics
In September 2022, Mahindra Logistics Limited (MLL) announced the acquisition of Rivigo’s B2B express business. This strategic move aimed to bolster MLL’s express logistics capabilities, integrating Rivigo’s extensive network and technological prowess. The acquisition encompassed Rivigo’s customers, team, assets, and technology platform, while Rivigo retained its truck fleet and full truckload operations.
Anand Mahindra, Chairman of the Mahindra Group, expressed his admiration for Rivigo’s business model, emphasizing the synergy between new-age startups and large corporations.
Financial Performance and Challenges
Rivigo’s financial journey has seen significant fluctuations. In the fiscal year ending March 2022, the company reported an operating revenue of ₹600 crore, a slight decline from the previous year. However, losses reduced by 44% to ₹179 crore during the same period.
The subsequent fiscal year witnessed a sharp decline in revenue, plummeting over 83% to ₹114 crore. Despite this downturn, Rivigo achieved a profit of ₹91 crore in FY23, marking a significant turnaround from the previous year’s losses.
Expansion of Express Hubs
In May 2023, under the aegis of Mahindra Logistics, Rivigo launched its first Express Hub in Bhiwandi, followed by facilities in Luhari and Pune. These hubs are part of a broader strategy to enhance the company’s express business capabilities, offering state-of-the-art infrastructure and services to diverse industries such as e-commerce, consumer goods, and engineering.
Leadership and Vision
Following the acquisition, Mahindra Logistics appointed Sreeram Venkateswaran as the CEO of Rivigo Services. With a focus on integrating Rivigo’s strengths, the leadership aims to provide faster, safer, and more reliable express deliveries, leveraging a sustainable ecosystem to enhance service delivery.
Conclusion
Rivigo’s journey reflects the dynamic nature of the logistics industry in India. From its innovative beginnings to its strategic acquisition by Mahindra Logistics, the company has demonstrated resilience and adaptability. As it continues to evolve, Rivigo remains committed to revolutionizing logistics, ensuring efficient and reliable services across the nation.
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Frequently Asked Questions (FAQ):
Q1: What services does Rivigo offer?
A1: Rivigo provides trucking services across various industries, including apparel, e-commerce, automotive, frozen and processed foods, and FMCG.
Q2: When did Mahindra Logistics acquire Rivigo’s B2B express business?
A2: Mahindra Logistics announced the acquisition of Rivigo’s B2B express business in September 2022.
Q3: What were Rivigo’s financial results in FY23?
A3: In FY23, Rivigo’s revenue declined by over 83% to ₹114 crore, but the company achieved a profit of ₹91 crore, marking a significant turnaround from the previous year’s losses.
Q4: Who is the current CEO of Rivigo Services?
A4: Following the acquisition by Mahindra Logistics, Sreeram Venkateswaran was appointed as the CEO of Rivigo Services.
Q5: What is the purpose of the new Express Hubs launched by Rivigo?
A5: The new Express Hubs aim to enhance Rivigo’s express business capabilities, offering state-of-the-art infrastructure and services to industries such as e-commerce, consumer goods, and engineering.
