Warburg Pincus commits $125m to India logistics start-up

The new venture, Stellar Value Chain Solutions, will provide integrated logistics services that will include multi-user modern warehousing, primary and secondary distribution, e-fulfillment, and cold storage. It will focus on consumption-driven areas such as food and beverages, fast-moving consumer goods, electronics, automotive, pharmaceuticals and engineering.

"We believe there is a shortage of high quality providers of outsourced logistics services such as warehouse management and distribution to a wide range of sectors in India. Anshuman brings deep domain expertise and a strong track-record of execution and value creation in this industry," Viraj Sawhney, managing director at Warburg Pincus, said in a statement.

India's logistics and warehousing industry is said to be worth $130 billion. Consolidation opportunities are expected to arise as customer needs evolve, driving demand for more automation and technology in supply chains.

This is the latest in a string of India warehousing and logistics investments by Warburg Pincus. Last year, the private equity firm committed $120 million to Ecom Express, an e-commerce logistics start-up that provides last-mile delivery services and entered into a joint venture with Embassy Group to building industrial parks with warehousing facilities. It has also backed Gangavaram Port and bulk liquid storage provider IMC.

Neither is the strategy of seeding logistics businesses by partnering experienced operators new to Warburg Pincus in Asia. It was the first investor in China-based warehousing provider e-Shang, which subsequently received several rounds of follow-on funding before merging with regional counterpart Redwood Group in early 2016.

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• Topics
• South Asia
• Expansion
• Industrials
• Infrastructure
• India
• Logistics
• Warburg Pincus Asia
• Growth capital