Exclusive: Logistics firm Leap India to raise $63 Mn led by KKR

Logistic solution startup Leap India is raising Rs 535 crore (approximately $63 million) from Sixth Sense, FirstBridge India, Madhurima International, and others. This is the first round of investment for the Mumbai-based company this year.

The board at Leap India has passed a special resolution to issue 1,16,25,000 preference shares and 17,50,000 equity shares at an issue price of Rs 400 each to raise Rs 535 crore, its regulatory filing accessed from the Registrar of Companies (RoC) shows.

Private equity firm KKR (through Vertical Holding) will lead the round with Rs 333 crore, while Sixth Sense, First Bridge, and Madhurima International will contribute Rs 70 crore, Rs 60 crore, and Rs 50 crore, respectively. Niveshaay Sambhav Fund and individuals, including Rakesh Shah and Madhu Sudhir Jain, will collectively invest the rest of the amount.

The filing further added that the fresh proceeds will be used for business operations and to meet the general corporate requirements of the firm.

According to the Fintrackr estimates, the company will be valued at around Rs 5,060 crore or $600 million post-allotment.

According to the filing, KKR will now control around 78.64% stake in Leap India while Sixth Sense, First Bridge, and Madhurima International will command 1.38%, 1.19%, and 0.99% respectively.

Leap India specializes in supply chain solutions, offering services such as equipment pooling, packaging, inventory management, transportation, and repair and maintenance. Its clientele industries include e-commerce, consumer durables, beverages, and automotive.

Last year, private equity firm KKR picked a majority stake in Leap India with a mix of primary and secondary investments. That infusion reportedly gave a complete exit to TVS Capital, North Heaven, Mayfield, Morgan Stanley, and other early backers. In 2021, Morgan Stanley pumped $25 million into the Mumbai-based firm.

The company has yet to post its annual statements for the previous fiscal year. During FY23, the company recorded a 20% year-on-year increase in its scale to Rs 257 crore with a profit of Rs 9 crore in the same period.