Logistics continues to be a hot bet for investors. India Equity Partners, a mid-market private equity firm is investing $10 million into Fourcee Infrastructure Equipments Pvt. Ltd, a Mumbai based air freight and logistics firm, sources close to the development told VCCircle. This is the second round of funding into the company. Last year, Fourcee raised $10.98 million from SIDBI Venture Capital and Mayfield Fund.
An email sent to Gaurav Mathur, Managing Director, India Equity Partners to confirm the development, said, "We are unable to comment on this".
As part of promoter buyback, SIDBI Venture Capital has completely exited its investment from Fourcee Infrastructure, Harsh Kaul, MD, SIDBI VC told VCCircle.
Fourcee is in the business of movement of liquids mainly Non Petroleum oil and Lubricants (Non-POL) on rail in containers hitherto moving on road in tank containers. It claims to be the only company in India into movement of non-POL products on rail in ISO containers. By shifting liquid cargo from road to rail, it provides 20% to 25% cost advantage to the industry.
The company's clientele includes Continental Carbon India Limited which has tied up for an arrangement from Mundra Port to Ghaziabad Rail Siding (CBFS) and from JNPT to Ghaziabad Rail Siding (CBFS); Hindustan Unilever Limited - from Mundra Port to Orai (CPKO) and from Kandla Port to Orai (PFAD); Adani Wilmar Limited from Mundra Port to Mantralayam (crude sunflower oil) and Philips Carbon Black Limited (from Mundra Port to Palej) among others.
In another deal in the logistics space, India Equity Partners Fund Advisors Pvt. Ltd. recently invested $10 million in Swastik Roadlines Pvt Ltd, Gwalior based food cargo supply chain service provider.
There have been many private equity investments in the rail and freight space in the recent past. AA Development Capital Investment Managers invested $10 million into Siesta Logistics Corporation Ltd., Reliance Venture Asset Management Ltd., Kleiner Perkins Caufield & Byers (KPCB), Sherpalo Ventures put $8.8 million into Reverse Logistics, and Clearstone Venture Advisors putting $3 million into Elbee Express Pvt. Ltd. among others.