Leap India, a Mumbai-based logistics solutions provider, is set to raise ₹535 crore (approximately $63 million) in a funding round led by private equity firm KKR.
Investment Details
The company's board has approved the issuance of 1,16,25,000 preference shares and 17,50,000 equity shares at ₹400 each, totaling ₹535 crore. KKR, through Vertical Holding, will lead the investment with ₹333 crore, securing a 78.64% stake in Leap India. Other investors include Sixth Sense (₹70 crore for a 1.38% stake), First Bridge (₹60 crore for a 1.19% stake), and Madhurima International (₹50 crore for a 0.99% stake).
Company Valuation and Use of Funds
Post-allotment, Leap India's valuation is estimated at around ₹5,060 crore ($600 million). The fresh capital will be utilized for business operations and general corporate purposes.
About Leap India
Specializing in supply chain solutions, Leap India offers services such as equipment pooling, packaging, inventory management, transportation, and repair and maintenance. Its clientele spans industries including e-commerce, consumer durables, beverages, and automotive.
Financial Performance
In the fiscal year 2022-2023 (FY23), Leap India reported a 20% year-on-year increase in revenue to ₹257 crore, with a profit of ₹9 crore.
Our Opinion on the News
KKR's continued investment in Leap India underscores the growing importance of efficient supply chain solutions in India's rapidly expanding e-commerce and consumer sectors. Leap India's diverse service offerings and client base position it well to capitalize on this growth. The substantial stake acquired by KKR suggests confidence in Leap India's business model and future prospects. This infusion of capital is likely to enhance Leap India's operational capabilities, enabling it to expand its market presence and service offerings.
For KKR, this investment aligns with its strategy of backing companies poised for significant growth in emerging markets. As of June 30, 2024, KKR reported $601 billion in assets under management, reflecting a 16% year-over-year increase, indicating robust fundraising and investment activities.
Overall, this development is a positive indicator for the Indian logistics sector, highlighting increased investor interest and the potential for substantial growth in the coming years.
Source: Entrackr