M&M to merge logistics platform SmartShift with truck rental startup Porter
24 Feb 2018
Mahindra and Mahindra (M&M) will merge its on-demand logistics platform SmartShift with truck rental startup Porter. M&M will invest Rs65 crore in the merged entity.
The merger will help both SmartShift and Porter to spread out on a pan-India basis in the shared mobility space.
This merger is subject to corporate and regulatory approvals, M&M said in a press release.
The merged entity, which will be called Mahindra SmartShift will continue to service their respective customers and partner-drivers with their respective brands.
This consolidation is likely to strengthen the joint objectives of SmartShift and Porter within a reasonable time frame. M&M has been keen to invest in the shared mobility space as a part of its strategy to promote and participate in sustainable mobility solutions, including promoting load aggregation digital platforms.
''Since its inception, SmartShift has become the preferred choice for transporters and customers alike by consistently delivering on its customer value proposition of enhancing the spirit of entrepreneurship amongst transporters and enabling an improved business productivity amongst its customers. Being part of our diversified group while working on a young entrepreneurship culture has been our mantra for SmartShift. Our new association with Porter will be a win-win for both companies and will definitely cement our position in the ever-growing shared mobility space,'' Anish Shah, chairman, SmartShift, said.
Pranav Goel will be the CEO of Mahindra SmartShift while Kausalya Nandakumar will work as interim co-CEO to ensure smooth transition and integration of both the companies.
''Porter is the largest tech-logistics marketplace in the country, having serviced more than 200,000 customers and more than 10,000+ partner-drivers on the platform. This is a strong testament of the platform's seamless customer and partner-driver experience and our association with Mahindra will take it to the next level. The synergies between our business modules are evident and this association with Mahindra will further build on the trust of our stakeholders. With this Porter has now done a cumulative fund raise of more than $20 million,'' said Pranav Goel, co-founder of Porter.
The logistics industry in India is pegged at $130 billion with 35-40 per cent of it being in the intra-city space. It is also estimated that 18 lakh small commercial vehicles complete millions of transactions daily, across the country.