Mahindra Logistics acquires 60% stake in ZipZap for Rs 72 cr

Third-party logistic solutions provider, Mahindra Logistics Limited (MLL) announced its acquisition of a majority stake in the last-mile logistics service provider - ZipZap Logistics which operates under the brand Whizzard. Mahindra Logistics will acquire 60% in the firm for Rs 71.73 crore via primary as well as secondary purchases within two phases. It will further buy the remainder of its stake later on and turn it into a fully-owned subsidiary. The acquisition will be completed by MLL before November 30, 2023. MD and CEO Mahindra Logistics Rampraveen Swaminathan said the acquisition will help Mahindra in making deeper inroads towards smaller towns and cities in which Whizzard is having a strong presence. It will help them get into multiple formats for a last-mile delivery such as quick commerce coming up in a big way. From the company’s growth perspective the last mile is very important. From the perspective of the industry, last-mile accounts for 15% of them but contributes 40% of the cost for the companies. Along with the changing customer requirements and increasing demand for quick delivery the last mile delivery is growing at a very rapid pace. Much of the rapid growth came from e-commerce. Various new formats of the last mile delivery solutions are changing. The company is acquiring 60% via primary as well as secondary purchases. It is considered to be purchased for a consideration of Rs 71.73 crore in two stages. Image Source Also read: Mahindra Logistics leased 1.4 mn sq ft warehouses at LOGOS'