Private equity firm Multiples PE, founded by Renuka Ramnath, has made its second bet on the logistics sector, with a $35 million (nearly Rs 300 crore) investment in INSTANT-XP for a minority stake.
The PE firm had earlier invested in ecommerce logistics company Delhivery in 2014. It sold some of its stake in Delhivery to Tiger Global in 2015 and fully exited in 2021.
“INSTANT-XP is a proxy play on India’s consumption and industrial activity. This partnership between INSTANT-XP and Multiples will further accelerate the company’s growth while maintaining a strong focus on processes and governance to grow responsibly,” said Sridhar Sankararaman, MD, Multiples Alternate Asset Management.
The PE firm and INSTANT-XP, operated by Instant Transport Solution Pvt. Ltd, didn’t disclose other financial terms of the transaction including the size of the stake that Multiples picked up and the company’s valuation.
However, a person close to the development separately told VCCircle that Multiples PE likely bought a stake of more than 20% stake in the company.
INSTANT-XP intends to use the investment proceeds to enhance its technological capabilities, multiply revenue growth and expand its network and service offerings, said MD and CEO Jasveer Singh.
Founded in New Delhi in 2003 by brothers Rajbir Singh and Jasveer Singh, INSTANT-XP offers transport and logistics and container renting services. According to its website, it currently has a fleet of 1,110 vehicles, with 561 of them being 32-feet, SXL trailers.
In FY23, while the company’s profit after tax remained steady at Rs 11.77 crore, total revenues rose by a fourth to Rs 533.97 crore.
