Bengaluru-based logistics provider Spoton has announced its acquisition by a consortium of investors led by Samara Capital and Xponentia Fund Partners to invest into and build out the next stage of growth.\r\n\r\nPost-acquisition, the existing Spoton leadership team will continue to drive and execute the next phase of Spoton\u2019s growth strategy, working closely with the Samara and Xponentia Teams.\r\n\r\nEdelweiss was the exclusive financial advisor to the seller and the company for this deal. Reportedly the acquisition was done for $78.48 Mn (INR 550 Cr) to support Samara\u2019s plans to team up Amazon and Goldman Sachs to try to acquire More, the country\u2019s fourth-largest supermarket operator.\r\n\r\nFounded in January 2012, Spoton, established after PE firm India Equity Partners acquired the road express business of multinational company TNT, provides express logistics to over 4000 corporate and SME customers across industries.\r\n\r\nIt fulfils express logistics, business to business, serving clients across Hi-Tech, Automotive, Engineering, Pharmaceutical, Electronics, Electrical, Lifestyle and Retail industry segments aided by technology engineered, data-led network.\r\n\r\nAbhik Mitra, MD and CEO, Spoton Logistics, said, \u201cWe are delighted to have the new investor group on board in the next phase of our journey towards excellence and leadership. Their support for strong management teams to run the company, whilst playing a key role as a value-added partner focused on business strategy, internal controls, governance, financial management, and identifying and supporting growth opportunities, through business alliances and or M&A, will bring rich rewards to all.\u201d\r\n\r\nSpoton claims to grow aggressively in the road express business and aims to be the fastest growing player in this segment. Spoton has about 4,000 clients including Reliance, Bosch and ecommerce companies Flipkart and Amazon.\r\n\r\nAdditional service offerings such as air express cargo, third-party logistics (3PL) and speed trucking are also on the cards and detailed plans are being drawn up along with the Samara team. Domestic air express will be the first new product to be launched and this should be completed by Q4 FY19.\r\n\r\n\u201cThe Spoton Leadership team has done a fantastic job in building a defensible and profitable proposition in the opportunity-rich logistics sector, which is seeing and will continue to see the tailwinds due to GST, e-way bill and other initiatives. Spoton\u2019s success has been driven by strong corporate governance, an outstanding management team, supported by a Pan India network covering 20000 plus pin codes which is driven by global quality network engineering, led by technology and analytics. We look forward to partnering with them for an equally exciting second inning,\u201d said Abhishek Kabra, Director of Samara Capital.\r\n\r\nAided by the new investor group\u2019s global network, Spoton also plans to explore business alliances with leading global logistics players to boost revenue and growth opportunities for the company. Spoton claims to record INR 600 Cr of Annualised revenue and aims to take it to INR 1500 Cr in next five years.\r\n\r\nDevinjit Singh, Managing Partner at Xponentia said, \u201cWe are excited to be part of Spoton\u2019s journey to becoming a leading logistics company in India. Abhik is leading an entrepreneurial management team that has leveraged technology to build scale and provide great customer service. As the introduction of GST transforms the logistics industry in India, working with Samara and the management team, we see exciting possibilities to build SpotOn into a great company.\u201d\r\n\r\nThe companies claim that Spoton\u2019s customers will benefit, as the company aggressively continues to expand its network, add new products and continue to deliver operational and service delivery excellence.\r\n\r\nSamara plans to close its third fund of $550 Mn by the end of this year. Samara, which has already raised two funds worth around $700 Mn since its launch in 2007, is expected to use 70% of the proposed fund for buyout or control transactions.\r\nLogistics Industry In India\r\nOther startups in the logistics include ecommerce logistics startup Delhivery, Bengaluru-based Locus, Ahmedabad-based logistic IoT startup Locanix; Pune-based logistics startup XpressBees amongst others.\r\n\r\nAccording to a report by investment bank Avendus Capital, the logistics tech market is expected to surge to $9.6 Bn by 2020.\r\n\r\nPoised to touch $307 Bn by 2020, the Indian logistics sector has been witnessing increasing investments and competition. Inc42 DataLabs revealed that the sector recorded 27 deals worth $475.83 Mn in 2017.\r\n\r\nIn Q1 2018, the sector witnessed 3 deals worth $70.3 Mn according to Inc42 Tech Startup Funding Report Q1 2018.