Homegrown Logistics service provider Delhivery is set to acquire Pune-based software firm Algorythm Tech.

"The Board of Directors of the Company in its meeting held on Monday, December 19, 2022 has approved the acquisition of Algorhythm Tech Private Limited," Delhivery said in a regulatory filing on Tuesday (20 December).

Upon completion of the acquisition, Algorhythm Tech will become a wholly owned subsidiary of Delhivery.

Algorhythm Tech is an innovative supply chain products and solutions company. It offers comprehensive, end-to-end supply chain planning and execution solutions for industry sectors like FMCG, pharma, steel, auto, telecom etc. through their proprietary, AI-enabled and cloud-ready rhythm 2.0 platform.

The platform consists of a dozen products designed to deal with various problems in manufacturing, supply chain, and sales and distribution processes.

Delhivery said that Algorhythm Tech’s supply chain software tools are relevant to its supply chain services business - both as a value added service to its customers, and to drive cost optimisation in service delivery.

The company will acquire a 100 per cent stake in Alogrhythm Tech for Rs 14.90 crore. Further, "certain other payments" will be made to the Algorhythm's outgoing management team members, it added.

"In addition, Delhivery may provide inter-corporate loans to/infuse additional capital in the company to meet business requirements and settle past arrears and other liabilities," the company said, adding that the acquisition will be funded from the proceeds raised through the initial public offer.