Leap India: Logistics Solutions Startup Secures Funding

Leap India has emerged as a prominent logistics solutions startup, securing $63 million in funding from KKR in December last year. This funding was propelled by an impressive 44% revenue growth year-on-year for the fiscal year ending March 2024. Additionally, the Mumbai-based company experienced a remarkable fourfold increase in profits during the same period.

According to the consolidated financial statements from the Registrar of Companies, Leap India’s revenue from operations escalated to Rs 365 crore in FY24, a significant rise from Rs 253 crore in FY23.

Leap India’s Supply Chain Solutions

Leap India specializes in offering comprehensive supply chain solutions. These include equipment pooling, packaging, inventory management, transportation, and maintenance services. The company caters to various sectors such as e-commerce, consumer durables, beverages, and the automotive industry, operating 25 warehouses and 22 manufacturing units.

The income generated from services constituted an impressive 95.6% of the total revenue, which surged by 43.6% to Rs 349 crore in FY24. The residual income was attributed to the sale of pallets and forklifts. Furthermore, the company recorded an additional Rs 7 crore, resulting in a total income of Rs 372 crore in FY24 compared to Rs 258 crore in FY23.

Financial Insights and Expenditure Overview

As a fully integrated supply chain company, Leap India’s expenditure was influenced by depreciation and finance costs, which accounted for 50.5% of total spending, now increased to Rs 164 crore in FY24. Employee benefits also saw a substantial rise, up by 93.8% to Rs 62 crore over the last fiscal year.

Legal, freight, travel, and other operational costs pushed total expenditure up by 31%, amounting to Rs 325 crore in FY24, compared to Rs 248 crore in FY23. Detailed expenditure breakdowns can be found in various financial reports.

The significant revenue growth of 44% and prudent spending contributed to Leap India’s profits soaring by 4.1X to Rs 37 crore in FY24, in contrast to Rs 9 crore in FY23. On a per-unit basis, the firm spent Rs 0.89 to generate one rupee of revenue, with ROCE and EBITDA margins recorded at 8.26% and 56.72%, respectively.

Investment Background and Stakeholder Details

In the previous year, KKR made a strategic investment in Leap India, acquiring a majority stake through a combination of primary and secondary investments. This transaction reportedly allowed early investors such as TVS Capital, North Heaven, Mayfield, Morgan Stanley, and others to exit completely. Notably, Morgan Stanley had previously invested $25 million in the company in 2021.

Leap India has successfully raised more than $180 million to date and currently holds a valuation of $600 million. According to recent filings, KKR possesses around 78.64% of Leap India, while stakeholders such as Sixth Sense, First Bridge, and Madhurima International control 1.38%, 1.19%, and 0.99%, respectively.