Investcorp Invests Rs 500 Cr in Indian Logistics

Global alternative investment firm Investcorp has acquired the Indian contract logistics business of 20Cube for approximately Rs 500 crore. This strategic move underscores the significant investor confidence in India's burgeoning logistics industry.

Investcorp intends to inject an additional Rs 500 crore to Rs 750 crore. This capital, to be deployed with the company's founders, Anand Seetharaman and Ranjan Kedia, will fuel the acquisition of complementary businesses and the establishment of a comprehensive pan-India contract logistics platform. The founders will continue to lead the expanded operations.

The transaction involves a carve-out, separating the Indian contract logistics operations from the Singapore-headquartered 20Cube Logistics, which will continue its focus on international freight forwarding. The Indian business currently manages over 7 million square feet of warehousing space and has ambitious plans to expand this footprint to over 20 million square feet within the next four to five years.

This expansion is driven by the modernization of supply chains, increased manufacturing activity, and a rising demand for organized warehousing solutions across India. Contract logistics, encompassing services like warehousing, transportation, and inventory management, is increasingly leveraging digital tools for enhanced efficiency and tracking.

Gaurav Sharma, Head of India Investment Business at Investcorp, stated, "This investment reflects our continued conviction in India's rapidly evolving contract logistics sector." He emphasized the firm's intent to collaborate with 20Cube's leadership to scale a technology-enabled logistics platform.