KKR To Acquire Majority Stake In Pallet Pooling Platform LEAP India

Global investment firm KKR is acquiring majority stake in Indian pallet pooling platform LEAP India. The deal value remained undisclosed.

The acquisition of LEAP marks KKR’s latest infrastructure investment in India following its past deals in Hero Future Energies, Serentica Renewables, and Virescent Infrastructure, among others.

The transaction is expected to be completed by Q3 2023, subject to customary pre-closing and closing conditions.

Founded in 2013 by Sunu Mathew, LEAP provides a wide range of innovative and high-quality supply chain solutions, including equipment pooling, returnable packaging, inventory management and movement, transportation, and repair and maintenance to a diversified and large customer base across ecommerce, consumer durables, beverages, and other sectors.

LEAP had raised over $100 Mn in multiple funding rounds so far and is backed by the likes of TVS Capital, Schroder Adveq, IIFL fund, and several others. Earlier this year, LEAP also acquired Mumbai-based asset-renting firm SKAN Marine.

The startup claims to currently operates a network of 21 warehouses and over 3,500 customer locations while managing more than 6 Mn total assets, including pallets and containers, for its customers.

Ami Momaya, director of infrastructure at KKR claimed that LEAP is a “standout leader” in India’s pallet pooling industry that will play an important role in driving the country’s continued modernisation and growth.

“The company has grown rapidly since its founding under the leadership of a talented management team, and we look forward to collaborating closely and leveraging our deep infrastructure experience, operational expertise and global networks to help LEAP achieve its next stage of transformation,” Momaya said.

Deloitte and Transaction Square were LEAP’s advisors and Anagram Partners acted as its legal advisor for the transaction. 

In its statement, KRR said that the investment builds on strong macroeconomic tailwinds in India that focus on modernising, automating, and optimising efficiencies in supply chain and logistics services. As Indian corporations increasingly look to focus on core operations and sustainably streamline logistics arrangements, there is a significant opportunity for platforms such as LEAP to provide high-quality and efficient supply chain solutions.