KKR is set to double down on its bet on LEAP India Pvt Ltd, a storage and supply chain services provider that is already majority-owned by the private equity firm and is raising Rs 535 crore (around $62.7 million) in its latest funding round led.
KKR is investing Rs 333 crore in LEAP India’s ongoing fundraising, while Sixth Sense is investing Rs 70 crore, and First Bridge and Madhurima International are investing Rs 60 crore and Rs 50 crore, respectively. Niveshaay Sambhav Fund as well as few angel investors are participating in the round.
Digital media publication Entrackr was the first to report the development based on a company filing with the Registrar of Companies (RoC).
Founded in 2013 by Sunu Mathew, LEAP India specializes in packaging solutions that improve the storage and movement of products across supply chains. The company uses palletization, a process designed to improve warehousing efficiency while minimizing costs and transport damage.
Globally, the pallet industry is dominated by a handful of major players due to its high costs and infrastructure requirements. In India, Leap claims to be leading the market. It competes with players such as the Indian arm of Australia’s Commonwealth Handling Equipment Pool.
The company saw accelerated revenue growth for the financial year through March 2024 even as it improved its operating profit as well as operating margin. Its revenue jumped 44.5% to Rs 365.1 crore in FY24, according to provisional numbers. The company's earnings before interest, tax, depreciation and amortization (EBITDA) grew 61% in FY24 and margins are estimated to have improved by over five percentage points to 55.6%.
In August 2023, KKR acquired an 80.63% stake in LEAP India. KKR has also injected Rs 150 crore as fresh capital to help the company with the resources to support its growth. Before the KKR deal, the company raised capital from private equity and venture capital investors such as Schroder Adveq, Mayfield Fund, IndiaNivesh, Sixth Sense Ventures and a fund managed by Morgan Stanley.
