Mahindra Logistics has acquired strategic stake in freight management solution startup Transtech Logistics, also known as ShipX.
The Mumbai-based company said in a stock-exchange filing that it will acquire up to 115,554 compulsory convertible preference shares and 100 equity shares valued at Rs 7 crore (about $1 million). The company, one of India’s largest multimodal logistics service providers, said this acquisition would help it to embed technology into its ecosystem and Shipx will help it to enhance product features.
It claims that its solutions provide better visibility and control of operations across the entire network of transportation businesses including their branches, franchise locations and customer branches.
Last fiscal, sales revenues at the BSE-listed Mahindra Logistics jumped 28 per cent, at Rs 3,416 crore and its net profit soared 42 per cent at Rs 65 crore.
ShipX is a SAAS (Software as a Service) based transport management solution platform that serves the supply chain automation needs for third party logistics, shippers and transporters.
“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,” Pirojshaw Sarkari, CEO at Mahindra Logistics, said.
He said with its asset light business model, it is already like a ‘platform’. “The strengthening of our relationship with Shipx opens up a new opportunity to take this to the next level,” Sarkari pointed out.
Shipx has been working with Mahindra Logistics for over three years and has been enabling transportation solutions.