Algorhythm Acquires SemiCab India To Boost AI-Driven Freight Efficiency In Growing Market

(RTTNews) - Algorhythm Holdings, Inc. (RIME), a diversified tech-focused holding company, Monday announced that it has acquired SMCB Solutions Private Ltd. - SemiCab India, marking its second deal with SemiCab, Inc. after purchasing the U.S. business in July 2024.

The acquisition was executed through Algorhythm's subsidiary, SemiCab Holdings, LLC, which obtained 9,999 of the 10,000 outstanding shares of SemiCab India. In return, Algorhythm issued a $1.75 million promissory note and 119,742 common shares—roughly 5% of its total outstanding stock.

SemiCab India has demonstrated strong momentum, with annualized revenue increasing from $1.8 million in January 2025 to $4.5 million, and expectations to double again by the end of the year. The company holds active contracts with leading FMCG firms in India, offering significant potential for operational expansion—up to 25 times current levels.

Strategically, the acquisition enables Algorhythm to extend its footprint into other global regions facing similar freight inefficiencies, supporting its broader international growth ambitions.

According to Gary Atkinson, CEO of Algorhythm, the deal secures direct access to high-profile multinational clients and a fast-scaling AI logistics platform in a market primed for disruption. He emphasized India's logistical potential, driven by geographic density, strong partnerships, and infrastructure growth.

SemiCab Holdings CEO Ajesh Kapoor noted that India's logistics sector is in a pivotal phase, and with backing from organizations like NDFE and government support through infrastructure reforms, they aim to build the most efficient transportation networks. He welcomed Algorhythm's support in driving this transformation.

India's $1.3 trillion logistics industry is evolving rapidly, underpinned by the government's Gati Shakti National Master Plan to digitize supply chains. As part of this, the National Digital Freight Exchange (NDFE), a public-private consortium led by the Confederation of Indian Industry, selected SemiCab as its AI logistics partner. Over 40 global firms are involved, with many already piloting SemiCab's solutions.

SemiCab's AI-powered platform delivers significant operational benefits, including an increase in freight utilization from approximately 65% to 90% and a reduction in total shipping costs by up to 10%. It enhances trucking capacity by around 30% without the need for additional vehicles, streamlines labor requirements by minimizing the staffing needed for scheduling and billing, and supports sustainability goals by cutting carbon emissions by as much as 25%.

SemiCab's platform offers end-to-end shipment visibility, real-time collaboration, and seamless integration with existing transport management systems, aided by automation bots for repetitive tasks.

RIME is currently trading at $2.572 or 2.60% lower on the Nasdaq Capital Market.