Highlights
Leap India Secures Rs 535 Crore Funding Round
Leap India, a startup focused on logistics solutions, is set to raise Rs 535 crore (approximately $63 million) through investments from Sixth Sense, FirstBridge India, Madhurima International, and other investors. This marks the company’s first funding round of the year, based in Mumbai.
The board of directors at Leap India has approved a special resolution to issue:
- 1,16,25,000 preference shares
- 17,50,000 equity shares
The shares will be issued at a price of Rs 400 each to achieve the Rs 535 crore target, as detailed in the regulatory filing from the Registrar of Companies (RoC).
Investment Breakdown
Private equity firm KKR (via Vertical Holding) is leading this funding round with an investment of Rs 333 crore. The contributions from other investors include:
- Sixth Sense: Rs 70 crore
- FirstBridge: Rs 60 crore
- Madhurima International: Rs 50 crore
Additions to the investment will come from Niveshaay Sambhav Fund and individual investors, such as Rakesh Shah and Madhu Sudhir Jain, covering the remainder of the funding amount.
Utilisation of Funds
According to the filing, the new funds will be allocated for:
- Business operations
- General corporate requirements
Startup Superb estimates that Leap India will achieve a valuation of approximately Rs 5,060 crore, equating to $600 million, following this allotment.
Ownership Stake Post-Investment
Following this funding round, KKR is expected to hold about 78.64% of Leap India. Meanwhile, stakes for the other investors will be as follows:
- Sixth Sense: 1.38%
- FirstBridge: 1.19%
- Madhurima International: 0.99%
About Leap India
Specialising in supply chain solutions, Leap India offers a range of services, including:
- Equipment pooling
- Packaging
- Inventory management
- Transportation
- Repair and maintenance
Its diverse client base spans industries such as e-commerce, consumer durables, beverages, and automotive sectors.
Historical Funding and Growth
In the previous year, KKR acquired a majority stake in Leap India through a combination of primary and secondary investments, facilitating complete exits for early investors, including TVS Capital, North Heaven, Mayfield, and Morgan Stanley. Notably, in 2021, Morgan Stanley invested $25 million into the company.
Leap India has not yet released its annual statements for the last fiscal year. However, during FY23, the firm recorded a 20% year-on-year growth, achieving a revenue of Rs 257 crore and generating a profit of Rs 9 crore.