Largest Contract Expansion in Company’s History, 10X Increase Over Initial Pilot Program
Fort Lauderdale, FL, Dec. 11, 2025 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (“Algorhythm”) (NASDAQ: RIME) – a leading AI technology company, announced today that SemiCab has secured a major expansion of its Master Services Agreement with one of India’s largest paint manufacturers and retailers. The customer, one of the 10 largest global shippers in the paints industry with over $4 billion in annual sales, operates across 60 countries in Asia-Pacific, Africa, and the Middle East.
Under the newly expanded agreement, the number of committed lanes has grown more than seven-fold to 183 lanes, representing up to an additional $5.5 million in annual service revenue for SemiCab. SemiCab initially launched a commercial pilot program with the customer in early 2023, managing 25 lanes and generating approximately $0.5 million in annual revenue.
This $6 million expansion marks the largest single contract award in SemiCab’s history and is expected to increase its annualized revenue run rate (ARR) to more than $13 million once the expansion is complete. Powered by its AI-enabled, cloud-based Collaborative Transportation Platform, SemiCab’s logistics and distribution solutions are designed to reduce logistics costs, improve delivery accuracy, and eliminate empty miles – key drivers of efficiency and sustainability in the global freight industry.
Ajesh Kapoor, CEO of SemiCab Holdings, LLC, commented, "We’re thrilled to expand one of our largest customer relationships to date. This award is a strong validation of the results our AI-powered platform delivers. By increasing freight volume across this network, we can unlock even greater efficiencies, reduce empty miles, and provide even greater cost savings for our customers."
“As our network grows and more freight flows through our platform, we unlock powerful network effects that create new opportunities for optimization and efficiency,” added Mr. Kapoor. “Each new customer and expanded contract not only increases the volume of shipments we manage but also strengthens the density and reach of our network. This creates a self-reinforcing cycle – higher utilization, lower empty miles, and improved economics – that allows us to scale rapidly and capture additional growth opportunities across India.”
Since 2021, SemiCab has entered into more than a dozen pilot programs with new customers in both the US and India. These pilot programs generate between $1 million and $2 million in freight services revenue for SemiCab over a period of 6 to 12 months. As these pilot programs complete their initial term, many customers expand both the volume and geographic scope of the awarded lanes.
This is now the fifth major contract expansion in India in 2025 to expand significantly beyond the initial pilot phase. SemiCab announced a similar contract expansion with Kellanova India, one of the largest fast-moving consumer packaged goods producers in India, in early June 2025 and with a Fortune 50 global CPG company in August 2025.
About Algorhythm Holdings
Algorhythm Holdings, Inc. is a leading AI technology company focused on the growth and development of SemiCab, an emerging leader in the global logistics and distribution industry. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address 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
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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.
