Rivigo may be looking for a buyer in FirstCry or Flipkart

23 Aug 2022 , 09:42 AM

Rivigo has discussed a potential transaction with omnichannel baby products store FirstCry and internet marketplace Flipkart. Due to investors’ heightened caution as a result of the prolonged economic slump, the unicorn logistics tech company has had difficulty raising new capital.

Sources in  the know spoke on the condition of anonymity because the talks around the acquisition of Rivigo are still in the early stages and may or may not result in a deal. They said that Rivigo had considered combining its business with FirstCry’s e-commerce-focused logistics company Xpressbees and Flipkart’s logistics division e-Kart.

The business’s board of directors agreed a few months ago that the company should explore for potential purchasers and that remaining independent was no longer an option. The business, nevertheless, is not in great shape; it has changed its business strategy in the past, going from being an aggregator to being asset-heavy and owning vehicles to back to asset-light again. At 3,000, its fleet size was substantially smaller.

The Gurugram-based logistics company, backed by venture capital firm Elevation Capital (previously SAIF Partners) and prominent private equity player Warburg Pincus, among others, has encountered challenges recently.