LEAP offers a suite of products and services for transportation and storage management, distribution, and warehousing for supply chain operations
The secondary funding round of $34 Mn follows a $25 Mn primary round from Morgan Stanley in January 2021
Early investors Mayfield Fund, IndiaNivesh, and SixSense Ventures have announced a partial exit from LEAP
Logistics tech startup Leading Enterprise in Advanced Pooling (LEAP), has raised $34 Mn in a secondary funding round led by Schroder Adveq and IIFL fund. Early investors Mayfield Fund, IndiaNivesh, and SixSense Ventures have announced a partial exit with this round.
Mayfield will continue to hold a 10% stake in the company after the secondary sale. The company raised $25 Mn from Morgan Stanley in a primary round in January this year.
Founded in 2013 by Sunu Mathew, LEAP is an asset pooling company that offers a suite of products and services for transportation and storage management, distribution, and warehousing for supply chain operations across India.
The company has an asset pool of approximately 4 Mn units, including pallets, large foldable containers, and utility boxes. LEAP, in India, primarily caters to the consumer goods, automotive sectors. Like other pallet pooling companies, LEAP manages pallets for the supply chain operations. Businesses can save costs and increase delivery efficiency by pooling pallets with LEAP and other companies, instead of buying them outright. LEAP handles repair and maintenance of the pallets that are used by its customers, thereby reducing their warehousing overheads.
India’s logistic sector is set to grow by $10.74 Bn between 2021-25. In it, the pallet pooling sector is expected to have a CAGR of 12%. In India, LEAP is competing with other pallet pooling companies like AWL, CHEP, among others.
In a statement to ET, Mathew said that the investors that sold their partial stake saw a 7x return on their investment. He added that the company’s net earnings is more than INR 100 Cr.
Till date, the company has raised more than $120 Mn from investors such as TCI Ventures, SSG Capital Management Group, and Rishabh Mariwala, son of Marico founder Harsh Mariwala. In its previous fundraise, the company secured INR 216 Cr ($31.77 Mn) in a Series C round led by private equity firm TVS Capital Funds.
This is Mayfield’s third exit in the last 30 days after its partial exit from Licious, after the online meat and seafood delivery company raised $192 Mn in its Series F, and the exit from Simplilearn, which was acquired by US private equity fund Blackstone.