$2 Billion Revenue CPG Company Awards SemiCab India New Pilot to Implement Drop & Hook Trucking Model

Company Announces Geographic Expansion of Lanes and Pilot of Drop & Hook Program in Indian FMCG Sector for the First Time

Fort Lauderdale, FL, June 04, 2025 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (“Algorhythm”) (NASDAQ: RIME) – an AI technology and consumer electronics holding company, today announced that its subsidiary, SMCB Solutions Private Limited (“SemiCab India”), has been awarded a large expansion to its Master Services Agreement with the Indian subsidiary of the world’s third largest consumer packaged goods (“CPG”) manufacturer with over $84 billion in annual revenues.

Under the first phase of the expanded services agreement, SemiCab India will provide managed transportation services to the CPG company on more than 40 heavily populated lanes throughout India, representing a 200% increase in lanes currently serviced. Upon completion of this phase of the relationship, the CPG company has agreed to broaden its relationship with SemiCab to include an expanded geographic footprint for services and an increased quantity of lanes served.

Ajesh Kapoor, CEO of SemiCab Holdings, LLC, commented, “We are excited to expand our relationship with our CPG client, which is one of the largest and most prestigious members of the National Digital Freight Exchange (“NDFE”) in India today. The expansion of our collaboration opens the door to tremendous growth opportunities with a global powerhouse in the CPG world.”

In connection with the contract expansion, SemiCab India announced a new pilot program with this CPG company in India modeled after the “drop & hook” freight model. Drop and hook refers to the process of a driver dropping off a full trailer at a destination and hooking up to an already pre-loaded trailer, enabling the driver to quickly move on to their next delivery route rather than waiting for the trailer to be loaded and unloaded. This process, which has been widely adopted in the United States, will help us double the driving time in India. It has not been widely adopted due to infrastructure, operational, and technology constraints that, before SemiCab, companies have been unable to overcome.

SemiCab’s Collaborative Transportation Platform provides the operational and technological capabilities to support the drop and hook model in the Indian market. The platform can cut turnaround times by up to 80%, increasing the monthly miles per truck from an average of 3,200 miles to 5,000 miles with limited additional costs, improving shipping margins dramatically. SemiCab India is expected to go live with this multi-national company in June 2025.

“We are very excited to help pioneer the drop and hook model in India,” added Mr. Kapoor. “This model can save countless hours of downtime, helping shippers avoid virtually all the congestion created by live loading and unloading in place today. Keeping our fleet fully deployed and quickly serving clients at metrics that no one else in the India market can match will serve as a major competitive advantage for us as we scale our business in India. We expect all other NDFE companies to adopt this model as we roll it out across the country.”

About Algorhythm Holdings

Algorhythm Holdings, Inc. is an AI technology and consumer electronics holding company with two primary business units – SemiCab and Singing Machine.

SemiCab is an emerging leader in the global logistics and distribution industry. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address these 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

Singing Machine is the worldwide leader in consumer karaoke products. Based in Fort Lauderdale, Florida, and founded over forty years ago, it designs and distributes the industry's widest assortment of at-home and in-car karaoke entertainment products. Its product portfolio is marketed under both proprietary brands and popular licenses, including Carpool Karaoke and Sesame Street. Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products and is also developing the world’s first globally available, fully integrated in-car karaoke system. Its products are sold in over 25,000 locations worldwide, including Amazon, Costco, Sam’s Club, Target, and Walmart.

For additional information, please go to www.singingmachine.com.

Investor Relations Contact:
investors@algoholdings.com
www.algoholdings.com

Forward Looking Statements

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.

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