Rivigo Held Talks With Flipkart And FirstCry For Potential Sale
The talk comes in line as the unicorn has struggled to raise funds as the investors turn fidgety because of the economic downturn
Logistics unicorn Rivigo has held talks with Flipkart, an e-commerce marketplace and FirstCry, an omnichannel baby products retailer for a potential sale, as per ET report. The talk comes in line as the unicorn has struggled to raise funds as the investors turn fidgety because of the economic downturn.
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The report said that the Rivigo's sale talk is still on preliminary stage that may or may not result in an acquisition deal. The company, reportedly, had said that it evaluated merging its operations with e-Kart, Flipkart's logistics arm and FirstCry's logistics unicorn Xpressbees.
As per earlier reports, the company's board was looking for potential buyers. Because existing independent was not a choice for them. A source close to the company in a news report was quoted as saying, "The company is not in great health, it has tweaked its business model in the past from being an aggregator to being asset heavy and owning trucks to now again being asset light, its fleet size reduced significantly from 3000."
As a response to this, Rivigo's co-founder and chief executive Deepak Garg, reportedly, said that, "The company was not engaged in sale talks but was aiming to close a new financing round. We are in advanced conversations with multiple financial and strategic investors to raise capital."
The reports said that Rivigo's co-founder, Gazal Kalra, has also left the company to start a new venture. In May, Garg admitted that the last couple of years were turbulent and painful, as it faced attrition even as its revenue dropped.
Rivigo is a technology company that is revolutionizing logistics and goods mobility in India with its unique, global-first relay trucking model, as per company's website.
