According to recent reports, E-commerce enablement platform, Shiprocket is all set to acquire textile company Arvind Ltd’s Omnichannel technology business, Omuni for an estimated amount of nearly Rs. 200 crores in a mix of equity and cash deal, the company said this Tuesday.
Not just that, the deal is said to come about a month after Shiprocket managed to acquire a majority stake in another logistics firm known as Pickerr for USD 200 million in again a mix of cash and equity.
The said business agreement is known to involve the transfer of the omnichannel technology division to Arvind Internet Limited (AIL), a wholly owned subsidiary of Arvind Ltd, for a total consideration of about Rs. 152.30 crores. Having said that, as per the agreement made, the entire shareholding of the said company shall be transferred to BigFoot Retail Solutions Private Limited (Shiprocket) for a sum of nearly ₹162.90 crores.
In addition to this, it is said that the transaction will help in enabling faster and much better delivery of shipments to consumers from the nearest store or warehouse, an official said in a statement. Moreover, it is said that Arvind Ltd is to get more than a 2 percent stake in Shiprocket as a part of the said deal.
“The transaction will be carried out as a combination of stock and cash for a total consideration of Rs 200 crore. The combination of both entities will facilitate quick, efficient deliveries of shipments from the nearest store or warehouse, significantly reducing delivery timelines and enhancing customer experience, Shiprocket said in a statement.
With most retailers adopting an omnichannel retail strategy to cater to consumers across digital and physical storefronts, the Shiprocket-Omuni acquisition deal will deliver a more robust and seamless post-purchase experience to customers, the statement said.
Also, as a matter of fact, both Shiprocket, as well as Omuni, are known to be integral partners in a rather large direct-to-consumer (D2C) commerce establishment segment, while Shiprocket claims to have nearly 2.5 lakh sellers as customers who are able to generate gross merchandise value of about USD 2.5 billion annually.
”We are pleased to announce the deal and excited to have Omuni as a part of the ever-growing Shiprocket family. Omuni’s SaaS products will allow us to unify inventory, order, catalogue, content, pricing, and data across physical and digital storefronts for the best possible e-commerce experience for customers. “Together, we aim to redefine e-commerce logistics through omnichannel retail enablement,” Shiprocket co-founder and CEO Sahil Goel said.
As per the company itself, Shiprocket is said to deliver packets to more than 70 million consumers in a year and its transactions are said to have been increasing by nearly 3 times year on year.
”We are delighted with the merger of our technology division into Shiprocket. We have built Omuni into an industry-leading product used by some of the largest brands in the country. By combining our retail stack with the Shiprocket Ecosystem we will be able to make the extensive inventory of retail stores available to be sold seamlessly via Shiprocket’s logistics as a service solution,” Arvind Ltd executive director, Kulin Lalbhai said.
Reading so far, I hope you must have gotten a fair insight into Shiprocket and its decision to acquire Omuni and by now I believe you will be decided on your own whether or not it was the right thing to do and will this acquisition really bring a difference?
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