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Global alternative investment firm Investcorp has acquired the India contract logistics business of 20Cube 3PL Solutions for about INR 500 crore. The investment will support the company’s technology expansion, pan-India network and growth in services as manufacturing activity increases across India. 20Cube currently operates more than 7 million square feet of warehousing space and plans to expand this to over 20 million square feet over the next four to five years. The company and Investcorp also plan to invest another INR 500-750 crore in acquiring complementary contract logistics businesses.
Global alternative investment firm Investcorp has acquired the India contract logistics business of 20Cube 3PL Solutions for about INR 500 crore. The investment is aimed at supporting the company’s technology capabilities, expanding its pan-India network and increasing its service offerings.
Investcorp will back 20Cube’s existing founding team of Anand Seetharaman and Ranjan Kedia as the company enters its next phase of growth. The focus will be on catering to rising demand for contract logistics services as manufacturing activity expands in India.
In addition to the acquisition, 20Cube and Investcorp plan to invest another INR 500-750 crore to acquire complementary contract logistics businesses.
The transaction involves the carve-out of the India contract logistics business from Singapore-headquartered 20Cube Logistics. The parent company will continue to focus on its international freight forwarding business.
20Cube’s India contract logistics operations currently cover more than 7 million square feet of warehousing space and serve large enterprise customers across sectors including consumer durables, chemicals, automotive components and engineering goods. The company plans to increase its warehousing footprint to more than 20 million square feet over the next four to five years.
Gaurav Sharma, Head of India Investment Business at Investcorp, said the acquisition was being made in partnership with 20Cube’s founders and reflected the firm's continued focus on India’s contract logistics sector. He added that Investcorp would work with the leadership team to scale a technology-enabled logistics platform as supply chains in the country continue to modernise.
Investcorp currently has a presence in India through NDR Warehousing and Miebach Consulting. Its India investment team focuses on growth-stage businesses across consumer, healthcare, financial services, software and business services.
Its investments in India include Global Dental, Wakefit, Canpac, NuSummit, Easy Home Finance, Safari Industries, NDR Warehousing and ASG Eye Hospitals.
Anand Seetharaman, Managing Director of 20Cube 3PL Solutions, said the investment would help the company strengthen its technology capabilities, expand its pan-India network and serve the changing requirements of India's logistics sector.
Varun Laul, Partner at Investcorp, said 20Cube differs from conventional contract logistics businesses through its on-demand, multi-client warehousing model, which combines warehousing with transportation and other value-added services. He said the company’s exposure to consumer durables, automotive components, chemicals and engineering goods positions it to benefit from increasing manufacturing activity linked to the Make in India programme.
The transaction was advised by Ernst & Young LLP on financial and tax matters and Anagram Partners on legal matters for Investcorp. IndigoEdge acted as financial advisor to 20Cube.
The acquisition comes as India's contract logistics sector expands alongside manufacturing growth, organised warehousing demand and changes in supply-chain operations. For 20Cube, the immediate focus will be on expanding its warehouse network and technology capabilities, while the planned acquisitions could further increase its scale across the domestic market.
Source PTI
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