SemiCab, the AI‑enabled logistics platform of Algorhythm Holdings, announced a $6 million expansion of its Master Services Agreement with one of the world’s largest paint manufacturers. The new agreement increases the number of committed lanes from 25 to 183, a seven‑fold jump that adds $5.5 million in annual service revenue.
The expansion is the largest single contract award in SemiCab’s history and is expected to lift the company’s annualized revenue run rate to more than $13 million once the expansion is fully operational. The deal underscores the platform’s ability to scale and deliver cost savings by reducing empty miles for a major global customer, reinforcing SemiCab’s position as a high‑growth AI logistics provider and strengthening Algorhythm’s financial foundation as it continues to focus on its core AI distribution business.
The paint manufacturer, which reports over $4 billion in annual sales and operates in 60 countries, had a pilot program that covered 25 lanes and generated approximately $0.5 million in annual revenue. The expansion adds 158 new lanes, bringing the total to 183, and is projected to generate $5.5 million in recurring revenue over the next year.
CEO Ajesh Kapoor said the win “validates the results our AI‑powered platform delivers.” He added that increasing freight volume across the network will unlock greater efficiencies, reduce empty miles, and provide even greater cost savings for customers. The expansion also signals that SemiCab’s collaborative transportation platform is gaining traction with large, global clients, a key milestone in the company’s strategy to become a leading AI logistics provider.
Investors welcomed the expansion, citing the large contract and projected revenue growth as evidence of SemiCab’s execution capability and the broader upside of its AI‑enabled logistics model. The deal also aligns with the growing demand for AI‑driven route optimization and empty‑mile reduction in the logistics industry.
The AI logistics market is expanding rapidly, with forecasts indicating significant growth as shippers seek efficiency gains. SemiCab’s ability to secure a multi‑year, high‑value contract demonstrates its competitive advantage and positions the company to capture additional market share as the industry continues to adopt AI solutions. The expansion also provides Algorhythm with a stronger recurring revenue stream, supporting its ongoing transformation away from legacy consumer electronics toward a high‑margin AI distribution business.
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