Mumbai-based logistics startup Leap India has raised INR 216 Cr ($31.77 Mn) in a Series C funding round led by private equity firm TVS Capital Funds.
While TVS Capital has infused INR 100 Cr ($14.52 Mn), Sixth Sense Venture Fund invested INR 32 Cr ($4.64 Mn) and Samena Capital pumped in INR 40 Cr ($5.81 Mn) along with existing investors such as Mayfield and IndiaNivesh Fund.
Till date, the company has raised $97 Mn from investors such as TCI Ventures, SSG Capital Management Group, and Rishabh Mariwala, son of Marico founder Harsh Mariwala.
Leap India founder and CEO Sunu Mathew said that the fresh funds will help maintain the high growth trajectory. He said, “We are strengthening our capabilities by investing in track and trace technologies, enhancing our information platforms and modernising the operational infrastructure to provide a best-in-class customer experience.”
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Founded in 2013, Leap India is a pallet and container rental provider across India. LEAP India deals in returnable packaging and pooling of equipment — wooden pallets and boxes, plastic containers, metal wire mesh — catering to all sectors that use these products to store or transfer goods from one site to another.
According to the company, it has over 100 clients including Tata Motors, LG, Bluedart, Abbott, Carlsberg, All Cargo, etc. Further, it claims to have over 600K total assets managed across more than 300 locations.
LEAP India clocked an annual revenue of $11.1 Mn (INR 78 Cr) last year. The company had earlier targeted revenues of $15.6 Mn (INR 100 Cr) in FY17 against the $5.77 Mn (INR 37 Cr) it logged in FY16.
“The private asset lending space in logistics is growing hugely with the goods and services tax-based rationalisation of the supply chain. This is an industry driven by the network effect because one needs to have a network of warehouses and customers to be able to make the rental business work efficiently,” said Gopal Srinivasan, managing director and chairman, TVS Capital Funds.
Mathew also said to drive the next phase of growth and profitability, the company has hired industry veterans and subject matter experts.
According to Inc42’s State of The Indian Startup Ecosystem 2018 Report, India had over 900 logistics startups as of November 2018. Between 2014 and 2018, these startups have raised over $1.4 Bn funding across 115 deals.
This continuous investor attention and consumer need has given rise to multiple unicorns in the logistics industry itself. SoftBank has backed logistics unicorn Delhivery, which competes with other major players such as unicorn startup BlackBuck and more.
In the Union Budget 2019, the government has allocated INR 100 Lakh Cr over the next five years to build and develop critical logistics and transport infrastructure. At present, draft national logistics policy is under works and is expected to bring down India’s expenditure on logistics to 9% of GDP from the existing 14%.