LogiNext Solutions, a leading logistics software-as-a-service (SaaS) startup backed by Tiger Global and Steadview Capital, has recently undergone a major restructuring process. According to official documents reviewed by ET, the Mumbai and New Jersey-based company has sold its assets for a modest sum of $250,000 to Stellation Inc, a registered entity based in Delaware.
Despite having raised a total of $50 million through various funding rounds, LogiNext Solutions has made the decision to shut down its brand and transfer all client contracts to Stellation, as per a board resolution passed on July 8th. The assets being sold include not only LogiNext’s software and hardware, but also all of its subsidiaries, customers, and vendor contracts.
The board further noted that the distribution of funds to stockholders is not expected to exceed the liquidation preference of the company’s preferred stock. Consequently, it is unlikely that the remaining assets will be distributed to holders of the company’s common stock.
To facilitate this transition, LogiNext Solutions has returned approximately $8-9 million to Tiger Global and Steadview Capital from its reserves. Additionally, the company has set aside $2 million as working capital.
Going forward, all contracts will now be managed under the entity name Stellation. This restructuring process represents a significant shift for LogiNext Solutions as it navigates the challenges associated with a liquidation process and explores new opportunities for growth and development.