LEAP India Taps UBS, Avendus Capital, Other Bankers For IPO

SUMMARY

LEAP India has roped in UBS, Avendus Capital, IIFL and JM Financial as lead managers for its upcoming initial public offering

The Mumbai-based startup is planning to file DRHP with SEBI within the next few days and is aiming to get listed on the stock exchanges in the next six months

The startup's existing investor KKR is looking to make a partial exit via IPO and aims to value the startup at $2.5 Bn for its public listing

Supply chain solutions provider Leap India has reportedly roped in UBS, Avendus Capital, IIFL and JM Financial as lead managers for its upcoming initial public offering (IPO).

A Mint report, citing people close to the matter, said that LEAP is planning to file its draft red herring prospectus (DRHP) with SEBI within the next few days and is aiming to get listed on the stock exchanges in the next six months.

The report further said that the Mumbai-based startup’s existing investor KKR is looking to make a partial exit via IPO and aims to value the startup at $2.5 Bn for its public listing.

Queries sent to KKR did not elicit any responses by the time of publishing the story, while Sunu Mathew, founder of LEAP India declined to comment on the development.

In the run up to its IPO, last week the startup converted into a public entity and also appointed Sanjiv Gupta and Harinarayan Nair as independent directors. This is not the first time LEAP is putting its foot forward to get listed on the bourses.

Back in 2022, reports surfaced that the startup is looking to raise about INR 1,000 Cr via public listing. But later the plan got dropped and instead KKR acquired a majority stake in the startup the following year.

However, an MCA filing by LEAP mentioned that the startup is seeking to raise INR 535 Cr from KKR, along with participation from Sixth Sense Ventures, FirstBridge India, Madhurima International, among others.

Founded in 2013 by Mathew, LEAP India specialises in providing supply chain solutions via asset polling where companies pool in their assets such as pallets and containers which can be used by multiple companies. This leads to re-using of tools and less wastage.

The startup also provides other services such as transportation, returnable packaging and repair and maintenance of tools and assets among others.

Under its inventory management offering, LEAP has a cloud-based inventory management system which helps in auditing and keeping a track of inventory for its clients. The startup also manufactures essential logistics tools such as crates, pallets, containers and cargo bars among others.

Besides, it also offers electric and fossil fuel powered forklift trucks via its subsidiary TRON. LEAP India counts the likes of Mahindra, Amazon, Flipkart, Coca-Cola and Nestle among its clients.

LEAP India claims to have captured 75% of the pallet asset pooling market in India owning 6 Mn assets, 22 warehouses and 9 manufacturing units under its kitty. Earlier this year, LEAP India acquired CHEP India for an undisclosed amount to strengthen its supply chain footprint in the country and expand reach.

According to Inc42’s datalabs, the startup has raised more than $184 Mn till date since its inception.

According to MCA filings, LEAP India’s operating revenue reached INR 319 Cr in FY24, a 27% increase from INR 249 Cr in the previous fiscal year. Its profit for the period jumped 336% to INR 41 Cr from INR 9 Cr in FY23.

Meanwhile, logistics major Shiprocket filed its DRHP earlier this year along with other new age startups such as Groww, boAt and Urban Company. Only three new-age startups have managed to get listed this year including Ather, ArisInfra and Smartworks.