Mahindra Logistics Ltd (MLL) has acquired a majority 60 per cent stake for ₹71.73 crore in ZipZap Logistics, a last-mile logistics service provider operating under its brand ‘Whizzard’.
MLL has bought 43,972 equity shares of ₹1 each at a premium of ₹6,692.02 per share. It has also purchased 63,200 Series A compulsory convertible cumulative preference shares (CCCPS) of ₹100 each at a premium of ₹6,593.02 per CCCPS, MLL said in a regulatory filing.
Hyderabad based Whizzard operates an intra-city distribution network for digital commerce and last mile delivery. Whizzard currently enables handling of 60 million packages per year, across diverse segments.
The acquisition will complement MLL’s existing last mile delivery business and EDeL, its electric vehicle (EV) based delivery services. Expanding technology based last-mile services is an integral part of MLL’s growth strategy and this transaction will help accelerate the addition of technology, geographical coverage and operational capabilities, the company said.
“Last mile delivery and fulfillment continues to see strong tailwinds with increased digital adoption, expanding delivery networks and onset of quick commerce. This association will enhance and strengthen our existing presence for our customers in e-commerce and other segments,” said Rampraveen Swaminathan, MD & CEO, Mahindra Logistics.