On Tuesday, Logistics firm Delhivery said it would acquire supply chain solutions provider Algorhythm Tech for Rs 14.9 crore.

Upon completion of the deal, which is expected to occur by January 31, 2023, Algorhythm Tech will operate as a wholly-owned subsidiary of the company, Delhivery said. Founded in 2003 by Abhaya Borwankar, Ajit Singh and Sandeep Pendurkar, Algorhythm provides end-to-end supply chain planning and execution products to clients in various industries, including FMCG, Pharmaceuticals, Steel, Automotive and Telecommunications through its proprietary Rhythm 3.0 platform.

Delhivery said Algorhythm’s supply chain software tools could serve as a value-added service for unicorn clients and drive cost optimization in service delivery.

In addition to purchasing 100% of the shares and certain other payments to outgoing management team members, Delhivery may also provide intercompany loans or inject additional capital into the company to meet business needs and settle past arrears and other liabilities. The acquisition is financed with funds from an initial public offering earlier this year.

Last month, Delhivery said its shipments in FY23 are expected to grow by 18-30%. The company’s shipments rose 101% to 58.2 crore parcels in FY22, while revenue rose 63% to Rs 7,241 crore.

While Delhivery’s e-commerce unit, its biggest revenue generator, is expected to slow this year due to macro headwinds, the company said it is optimistic about the sector’s long-term prospects due to the penetration of e-commerce in India.