Mahindra Logistics, one of India’s largest 3PL (third party logistics) solutions provider has announced that has acquired strategic stake in Transtech Logistics, also known as ShipX. The company says it will acquire up to 115,554 compulsory convertible preference shares and 100 equity shares for an investment of upto Rs 7 crore.
Mahindra Logistics says this acquisition will help it to embed technology into its ecosystem and Shipx will help it to enhance product features.
ShipX is a SAAS (software as a service) based Transport Management Solution (TMS) platform that serves the supply chain automation needs for 3PLs, shippers and transporters. The company was incorporated on October 16, 2008 and operates from Bangalore, India. The company reported revenue of Rs 35.75 lakh in FY2016, Rs 47.98 lakh in FY2017 and Rs 53.00 lakh in FY2018 (unaudited).
Mahindra says the technology company has built a platform serving to logistics industry and is run by a mature and experienced team who were part of a Boston-based supply chain fulfillment company that had been incubated by Infosys.
ShipX has been working with Mahindra Logistics for over three years and has been enabling transportation solutions. According to Mahindra this acquisition will help it to increase end-to-end digitisation and bring in operational efficiencies.
Pirojshaw Sarkari, CEO, Mahindra Logistics, said, “Logistics in future will be more technology driven – both in terms of our own operations, as well as interfaces with our customers and business partners. With our asset light business model, we are already like a ‘platform’. The strengthening of our relationship with Shipx opens up a new opportunity to take this to the next level.”
Amarnath Kalale, co-founder, Transtech, said “MLL has been our most valuable customer for more than 3 years. This investment will help us in developing more product features and strengthening the organisation. “
The acquisition is expected to be completed by August 31, 2020.