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Logistics provider Delhivery Ltd. will acquire 100 percent stake in Pune-based supply chain software company Algorhythm Tech for a cash consideration of Rs 14.9 crore. The acquisition is likely to be completed by January 31, 2023.

The overall cash consideration includes acquisition of shares and other payments to outgoing management team members.

Delhivery will fund the acquisition through the proceeds raised from its Rs 5,235 crore IPO in May this year. The company's Red Herring Prospectus states that out of the funds raised from the fresh issue of equity shares through the IPO, Rs 1,250 crore were earmarked to fund inorganic growth.

Algorhythm Tech is an innovative supply chain products and solutions company based out of Pune. The company offers comprehensive solutions for design, inventory planning, sales and distribution, and manufacturing.

Incorporated in October 1999, Algorhythm Tech's revenue for the last three financial years has been on a decline. It reported revenue of Rs 6.4 crore in financial year 2020, Rs 5.9 crore in financial year 2021 and for the last financial year, its revenue stood at Rs 3.6 crore.

According to Delhivery, Algorhythm Tech's supply chain software tools are relevant to their supply chain services business, both as a value added service to its customers and also to drive cost optimisation in service delivery.

Delhivery, a leading player in the Rs 15 lakh crore Indian logistics industry was recently included in the FTSE All Cap Index from December 16. IIFL Alternative Research had pegged the inflows in the stock post the inclusion to be worth $8 million.

Shares of Delhivery opened higher but have given up all the gains to trade 0.2 percent lower at Rs 352. The stock remains well below its IPO price of Rs 487.