LEAP India in advanced funding talks to raise ₹300 crore
2 min read 24 Jul 2018, 09:52 AM ISTLEAP India is raising 300 crore of equity from global investors and a few existing investors are also participating in this funding round
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Mumbai: LEAP India, a supply chain solutions provider, is in advanced talks to raise a funding round of about ₹ 300 crore, said two people familiar with the plans. Founded in 2013 by Sunu Mathew, LEAP India provides returnable packaging and pooling of equipment such as wooden pallets, plastic containers, wooden boxes and metal wire mesh catering to all sectors, which use the equipment to store or transfer products from one location to another.
“The company has almost tied up the new funding round. They are raising ₹ 300 crore of equity from global investors and a few existing investors are also participating in this round. The company plans to announce very soon," said one of the two people cited above on condition of anonymity, as the talks are private.
LEAP India’s existing investors include Mayfield Fund, IndiaNivesh, Sixth Sense Ventures, TCI Ventures, and SSG Capital Management Group.
In January last year, the company had raised $13 million from new and its existing investors. Later, this year in May, the logistics firm raised debt of about ₹ 25 crore from Avendus Finance, the non-banking financial company (NBFC) business of KKR-backed Avendus Capital.
The city-based supply chains solutions firm had raised a debt of ₹ 100 crore from banks last year.
“Currently we are in the process of raising funds and I do not wish to put it on papers upfront," LEAPIndia founder Mathew said in an email response to queries.
LEAP, which offers its services to companies in sectors such as fast moving consumer goods (FMCG) companies, consumer durables, auto companies and beverages, also provides transport facility to the customers during either primary or secondary movement of products.
LEAP has pan-India presence servicing the entire logistics and supply chain spectrum under project management, freight management, logistics management, IT solutions and consultation and logistic solutions.
The logistics and supply chain sector has witnessed a lot of activity post the implementation of the goods and services tax (GST). The Indian logistics industry, which is worth around $160 billion, is likely to touch $215 billion in the next three years with the implementation of GST, the Economic Survey 2017-18 said.
This trend has attracted investors to pump in money in this particular space.
One such development came in January this year when Kishore Biyani’s Future Supply Chain Solutions said that it would fully acquire Snapdeal’s logistics service provider Vulcan Express Pvt. Ltd in an all- cash deal valued at ₹ 35 crore.
On the same line, the Carlyle Group-backed Delhivery is yet another company which is on the cusp of becoming a unicorn as it plans to go public.
Founded in 2011, it provides less-than-truckload shipping, full truckload shipping, cross-border delivery and a range of supply chain technology products to enterprises and small businesses. Another start-up Rivigo, which represents the new breed of logistics providers alongside Delhivery and Ecom Express, has raised over $100 million in funding so far. It also raised ₹ 100 crore in debt from a bunch of banks in March 2017.
Bengaluru-based logistics start-up Loadshare, which focuses largely on small and medium enterprises (SMEs), in April, raised funds from Stellaris Venture Partners and Matrix Partners India.
Similarly, in May, Trucking logistics start-up Fortigo Network Logistics Pvt. Ltd raised about $10 million in Series A funding from existing investors Accel Partners and Infosys co-founder Nandan Nilekani.
