Algorhythm Holdings’ AI‑enabled logistics platform, SemiCab, announced a new nationwide engagement with Marico, one of India’s leading consumer‑goods companies, that will generate an estimated $3 million in annualized revenue. The deal is the fifth multi‑million‑dollar contract that SemiCab has signed in 2025, underscoring the platform’s growing traction in a highly competitive market.
The $3 million annualized revenue represents a sizable portion of Algorhythm’s overall business. SemiCab’s Q3 2025 revenue was $1.7 million, a 1,273% year‑over‑year increase, yet the parent company still reported a net loss and negative operating margins. The contract therefore signals momentum for the logistics subsidiary while highlighting the broader financial challenges that Algorhythm faces, including a distressed financial‑strength rating and a high risk of bankruptcy.
Marico cited the success of a pilot program and the platform’s ability to deliver greater service consistency, improved planning accuracy, and lower transportation costs as the primary reasons for expanding the engagement. The expansion will allow Marico to leverage SemiCab’s AI‑driven routing and load‑optimization capabilities across its nationwide supply chain, a move that is expected to reduce freight spend and improve on‑time delivery metrics.
Ajesh Kapoor, CEO of SemiCab, said the partnership “deepens our network density and positions us to drive greater efficiencies as our platform scales.” He added that each new multi‑million‑dollar contract strengthens the company’s market position in India and accelerates the adoption of AI‑enabled logistics solutions.
In Q3 2025, Algorhythm reported record revenue growth but continued to post a net loss, driven in part by investments in the SemiCab platform and the Singing Machine segment, which historically has contributed the majority of the company’s revenue. The Singing Machine business has struggled to maintain profitability, and the company’s overall margins remain negative, underscoring the financial fragility that investors must consider.
Investors reacted positively to the contract announcement, noting the milestone for SemiCab’s expansion. However, analysts remain cautious about the parent company’s financial health, citing the distressed rating and ongoing margin pressure. The deal is viewed as a positive sign for the logistics arm, but it does not fully offset the broader risks associated with Algorhythm’s financial position.
The Marico contract represents a significant operational win for SemiCab and a tangible revenue opportunity, but it also highlights the stark contrast between the subsidiary’s growth trajectory and the parent company’s financial distress. Investors should weigh the potential upside of SemiCab’s expanding market presence against the risks posed by Algorhythm’s negative margins and high bankruptcy risk.
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