Algorhythm Holdings Acquires SemiCab India, Expands Global AI Transportation Footprint

Rhea-AI Summary

Algorhythm Holdings (NASDAQ: RIME) has acquired SMCB Solutions Private Ltd. (SemiCab India) for $1.75 million in promissory notes and 119,742 shares of common stock (5% of outstanding shares). SemiCab India has shown impressive growth, more than doubling its annualized revenue run rate from $1.8M to $4.5M since January 2025, with expectations to double again by year-end.

The acquisition provides access to India's $1.3T logistics sector and establishes partnerships with leading FMCG companies. SemiCab's AI platform, selected by the National Digital Freight Exchange (NDFE), delivers significant improvements: increasing freight utilization from 65% to 90%, reducing shipping costs by 10%, boosting trucking capacity by 30%, and cutting carbon emissions by 25%.

This marks Algorhythm's second transaction with SemiCab, following its U.S. business acquisition in July 2024, and positions the company to scale operations by over 25x in the Indian market.

Positive

• Revenue growth: SemiCab India doubled revenue run rate from $1.8M to $4.5M since January 2025
• Platform efficiency: Improves freight utilization to 90% and reduces shipping costs by 10%
• Strategic partnership with NDFE and access to 40+ national/global enterprises
• Potential for 25x scale operations growth in Indian market
• Integration with existing TMS systems for automated operations

Negative

• Issued $1.75M promissory note creating debt obligation
• 5% shareholder dilution from issued common stock
• Integration risks in merging operations across different geographies

Insights

Financial Analyst

Algorhythm's strategic acquisition of SemiCab India provides entry into a $1.3T market with minimal cash outlay and exponential growth potential.

Algorhythm Holdings' acquisition of SemiCab India represents a strategically significant expansion into India's massive $1.3 trillion logistics sector. The transaction structure is notably capital-efficient, consisting of a $1.75 million promissory note and 119,742 shares (approximately 5% of outstanding equity). This approach preserves cash resources while creating aligned incentives through shared ownership.

The growth metrics make this deal particularly compelling. SemiCab India has demonstrated exceptional momentum, more than doubling its annualized revenue run rate from $1.8 million to $4.5 million since January 2025, with projections to double again by year-end. This accelerating trajectory suggests the business is gaining significant market traction.

Perhaps most valuable are the existing multinational client relationships with leading FMCG companies. These established contracts offer substantial expansion potential – the release indicates opportunity to scale operations by over 25x in this geography. This multiplier effect could transform a relatively modest acquisition into a major revenue contributor.

This transaction complements Algorhythm's July 2024 acquisition of SemiCab's U.S. operations, demonstrating a systematic approach to building a global logistics technology platform. Beyond immediate financial impact, the deal establishes a blueprint for potential expansion into additional markets with similar logistics inefficiencies.

Supply Chain Expert

SemiCab's AI platform transforms India's fragmented logistics through public-private partnerships, boosting utilization by 25% while cutting emissions 25%.

This acquisition positions Algorhythm at the convergence of technological innovation and government transformation in India's logistics landscape. The timing strategically aligns with India's Gati Shakti National Master Plan – a comprehensive initiative digitally integrating supply chains across this vast geography.

SemiCab's selection as the AI logistics partner for the National Digital Freight Exchange (NDFE) creates a significant competitive advantage. This public-private consortium provides privileged access to over 40 national and global enterprises, with more than a dozen already piloting the platform. This effectively positions SemiCab's technology at the core of India's logistics modernization efforts.

The platform's performance metrics address critical inefficiencies in freight movement. By improving utilization rates from approximately 65% to up to 90%, the technology effectively creates capacity without additional vehicles. This translates to cost reductions of up to 10%, 30% increased trucking capacity, and 25% lower carbon emissions – particularly valuable in India's dense population centers.

The platform's integration capabilities enhance its adoption potential, connecting with existing TMS systems and employing automation for repetitive tasks. This offers operational improvements without disrupting established workflows – reducing implementation friction while providing real-time shipment visibility and enabling collaboration between shippers and transporters.

Acquisition Adds Multiple Multinational Customers in India and Unlocks Scalable Growth Opportunities in Rapidly Growing Indian Market 

Fort Lauderdale, FL, May 05, 2025 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (“Algorhythm”) (NASDAQ: RIME), a diversified technology-driven holding company, today announced the acquisition of SMCB Solutions Private Ltd., an India private limited company (“SemiCab India”). This marks Algorhythm’s second transaction with SemiCab, Inc. following the acquisition of its U.S. business in July 2024.

Under the terms of the deal, Algorhythm’s subsidiary, SemiCab Holdings, LLC, acquired 9,999 of the 10,000 issued and outstanding equity shares of SemiCab India. In exchange, Algorhythm issued a $1.75 million promissory note and 119,742 shares of its common stock (approximately 5% of Algorhythm’s issued and outstanding shares) to SemiCab, Inc.

Key Highlights of SemiCab India:

• Accelerated Revenue Growth: SemiCab India has more than doubled its annualized revenue run rate since January 2025 from approximately $1.8 million to approximately $4.5 million and anticipates to double it again by year-end.
• Multinational Client Base: Existing contracts with leading FMCG (fast moving consumer goods) companies in India offer a path to scale operations in the future by over 25x into a fast-growing, highly dense geography.
• International Expansion Blueprint: Establishes a proven model for expansion into other regions facing similar freight inefficiencies.
  

“We’re thrilled to complete the acquisition of SemiCab’s Indian operations,” said Gary Atkinson, CEO of Algorhythm Holdings. “India represents one of the world’s most compelling logistics opportunities due to its geographic density, strong institutional partnerships, and accelerating infrastructure investment. With this transaction, we gain direct access to top-tier multinational customers and a rapidly scaling AI platform positioned to disrupt the global freight market.”

Ajesh Kapoor, CEO of SemiCab Holdings, commented, “Transportation and logistics in India is going through a huge transformation. In partnership with NDFE and all our industry partners, we are building a technology infrastructure as the Government of India transforms the physical infrastructure in the country. This is the largest and most ambitious Collaborative Transportation initiative being supported by some of the largest and most progressive organizations worldwide. We are excited to have Gary and the Algorhythm team behind us in our quest to create the most efficient transportation networks one geography at a time.”

Transforming Freight in India

India’s $1.3 trillion logistics sector is undergoing rapid modernization. In 2021, the Indian government launched the Gati Shakti National Master Plan, a multi-ministerial infrastructure initiative aimed at digitally integrating supply chains across the country. As part of this initiative, the National Digital Freight Exchange (NDFE) – a public-private consortium led by the Confederation of Indian Industry – selected SemiCab as its AI logistics partner. More than 40 national and global enterprises are members of NDFE, and over a dozen have already initiated pilots with SemiCab’s Collaborative Transportation Platform.

Benefits of SemiCab’s AI Platform

SemiCab’s proprietary platform delivers measurable impact:

• Freight Utilization: Improves freight utilization rates from ~65% to up to 90%.
• Cost Savings: Reduces total shipping costs by up to 10%.
• Optimized Trucking Capacity: Increases trucking capacity by ~30% without added vehicles or miles.
• Labor Reduction: Dramatically reduces the staffing necessary to schedule, monitor, and bill for freight services.
• Sustainability: Cuts carbon emissions by up to 25%.
  

The platform improves visibility into the entire transportation network by providing live tracking for every load. The platform can identify, create, and execute real-time collaboration opportunities between shippers and transporters – without altering business workflows. Additionally, the platform integrates with existing TMS systems for automated indenting, invoicing, and real-time shipment visibility, and utilizes platform bots for extracting information and automating repetitive tasks.

About Algorhythm Holdings

Algorhythm Holdings, Inc. is an AI technology and consumer electronics holding company with two primary business units – SemiCab and Singing Machine.

SemiCab is an emerging leader in the global logistics and distribution industry. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address these common supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform achieves the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners to orchestrate collaboration across manufacturers, retailers, distributors, and their carriers. SemiCab uses AI/ML predictions and advanced predictive optimization models to enable fully-loaded round trips. With SemiCab’s AI platform, shippers pay less and carriers make more without having to change a thing.

For additional information, please go to: http://www.semicab.com

Singing Machine is the worldwide leader in consumer karaoke products. Based in Fort Lauderdale, Florida, and founded over forty years ago, it designs and distributes the industry's widest assortment of at-home and in-car karaoke entertainment products. Its product portfolio is marketed under both proprietary brands and popular licenses, including Carpool Karaoke and Sesame Street. Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products and is also developing the world’s first globally available, fully integrated in-car karaoke system. Its products are sold in over 25,000 locations worldwide, including Amazon, Costco, Sam’s Club, Target, and Walmart.

For additional information, please go to www.singingmachine.com.

Investor Relations Contact:
investors@algoholdings.com
www.algoholdings.com

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in Algorhythm’s reports to the SEC, including, without limitation Algorhythm’s Annual Report on Form 10-K for the year ended December 31, 2024. You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise.

FAQ

What is the value of Algorhythm Holdings' acquisition of SemiCab India (RIME)?

Algorhythm Holdings acquired SemiCab India for $1.75 million in promissory notes and 119,742 shares of common stock, representing approximately 5% of Algorhythm's outstanding shares.

How much revenue growth has SemiCab India shown since January 2025?

SemiCab India has more than doubled its annualized revenue run rate from $1.8 million to $4.5 million since January 2025, with expectations to double again by year-end.

What improvements does SemiCab's AI platform deliver to logistics operations?

The platform improves freight utilization from 65% to 90%, reduces shipping costs by 10%, increases trucking capacity by 30%, and cuts carbon emissions by 25%.

How many enterprises are members of NDFE partnering with SemiCab India?

More than 40 national and global enterprises are members of NDFE, with over a dozen having already initiated pilots with SemiCab's Collaborative Transportation Platform.

What is the size of India's logistics sector that RIME will be operating in?

India's logistics sector is valued at $1.3 trillion and is currently undergoing rapid modernization through government initiatives like the Gati Shakti National Master Plan.