Morgan Stanley backs India logistics provider

It brings total funds raised in the current financial year to INR2.1 billion. The company received a INR2.1 billion Series C in 2019 from IndiaNivesh Fund Managers, Mayfield India, Samena Capital Investments, Sixth Sense Ventures, and TVS Capital Funds. Previous investors also include IFMR Investment Managers and TCI Ventures.

Leap India claims to be the leading supplier of pallets locally with a 70% market share. Operations encompass 25 warehouses and 22 facilities for manufacturing pallets, foldable containers, and other kinds of boxes and crates. As of last year, it had about three million pallets and 600 customers, with core sectors including e-commerce, fast-moving consumer goods, and automotive. Revenue came to INR1.7 billion in 2020.

Leap India’s key differentiator is its focus on providing returnable equipment, and the company describes itself as the local leader in pallet pooling. This model allows businesses to rent or lease pallets from a shared pool rather than having to maintain their own pallet inventories.

“Given its unique business model and the criticality of its assets, for both storage and transportation, Leap has been able to navigate the COVID-19 situation successfully and has emerged stronger with an increased market share,” Shyamsundar Gurumoorthy, a managing director and co-head of Morgan Stanley India Infrastructure, said, according to Livemint. “In terms of market opportunity, India is hugely under-penetrated in terms of palletization.”

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• Topics
• South Asia
• Support services
• Expansion
• India
• Morgan Stanley
• Logistics
• manufacturing