Algorhythm Holdings, Inc. (NASDAQ: RIME) announced that its AI‑enabled logistics platform, SemiCab, has secured a substantial expansion of its Master Services Agreement with Apollo Tyres, Ltd., the world’s second‑largest tire manufacturer. The new agreement will provide managed transportation services across 20 high‑density lanes in India and increase the frequency of loads shipped throughout the expanded footprint.
The expansion is projected to generate up to $2.5 million in annual revenue for SemiCab. The deal builds on a pilot program that began in September 2024 and reflects Apollo Tyres’ confidence in SemiCab’s AI‑powered platform to reduce empty miles, lower transportation costs, and improve delivery accuracy across its Indian operations.
This contract win is a key milestone for SemiCab’s growth strategy in India, where the company is already expanding its truck fleet from 140 to 450 vehicles and targeting a $15‑$20 million annualized revenue run rate over the next year. The Apollo Tyres expansion strengthens SemiCab’s position as a preferred logistics partner for large multinational CPG companies and supports the company’s broader objective of scaling its AI platform across new geographies.
Management emphasized the strategic importance of the partnership. SemiCab CEO Ajesh Kapoor said, “We are pleased to be a partner to such a prestigious multinational company like Apollo Tyres. This new expansion of our existing relationship opens the door to immense growth opportunities for us. By leveraging our AI‑powered platform, we are highly confident in our ability to drive significant cost efficiencies and delivery performance improvements for Apollo across much of India.”
The deal also signals a broader shift for Algorhythm Holdings, which is divesting its legacy “Singing Machine” business and focusing on its high‑growth AI logistics unit. The $2.5 million annual revenue addition represents roughly 12% of SemiCab’s current annualized revenue run rate, underscoring the deal’s material impact on the company’s financial trajectory.
Analysts noted that the expansion validates SemiCab’s technology in a key market and provides a scalable revenue stream that can be replicated with other large OEMs. The market reaction was strong, with the company’s stock rising sharply on the day of the announcement, reflecting investor confidence in the new contract and the broader growth prospects for SemiCab’s AI platform.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.