Ahead of its much-awaited merger with Equitas Small Finance Bank, Chennai-based Equitas Holdings has divested its entire shareholding in logistics tech arm, Wowtruck to Goldstone Technologies Ltd.
As per the share sale and purchase agreement, Wowtruck, operated by Equitas Holdings’ arm Equitas Technologies Pvt. Ltd, has sold 2.5 crore shares to Goldstone for a consideration of Rs 8 crore.
GTL offers end-to-end sales and services of business intelligence and cloud products and solutions such as Tableau, Alteryx, Snowflake, AWS, Fivetran etc., among others.
The above-mentioned transaction was initiated by Equitas Holdings as part of the regulatory requirement to complete the amalgamation involving its subsidiary Equitas Small Finance Bank. Equitas Holdings is the promoter of Equitas Small Finance Bank (ESFB).
Under the scheme of amalgamation between ESFB and Equitas Holdings, all the assets held by the promoter, including its investments in ETPL, have to be transferred to and vested in ESFB.
Wowtruck, with a strength of over 100 employees, enables booking a commercial vehicle in a tap and provides accurate distance and rate calculation. The platform has 35,000 vehicles enrolled with it, catering to major FMCG, pharma, manufacturing and electronics organizations across the country.
"The government’s focus towards the adoption of EVs for a cleaner and greener environment will help us scale up faster in this sector and we shall be soon gearing up for an Rs 100 crore launchpad to catapult us into the big league,” said Pavan Chavali, managing director at Goldstone Technologies.
The current revenue of GTL is at around Rs 61 crore and with this acquisition, the size of the business would be nearly Rs 86 crore, as of June 2022.
GTL aims to introduce an EV fleet into the ‘Wowtruck’ platform for electric three, four-wheeler and truck segments, both on the goods and logistics transportation and will also look to provide finance solutions for the fleet owners.