KKR, an equity firm has recently acquired a significant ownership interest, in LEAP, which is India’s top pallet pooling platform. LEAP provides a range of services. Handles more than 6 million assets offering effective supply chain solutions to various industries. KKRs investment in LEAP is in line with India’s efforts to modernize its logistics sector and highlights the company’s growing focus on expanding its infrastructure investments, in Asia.
KKR, a prominent player in the realm of private equity, has announced its acquisition of a controlling stake in India’s leading pallet pooling platform, LEAP. This move underscores KKR’s continued investment focus within Asia’s burgeoning infrastructure sector.
Established by Sunu Mathew in 2013, LEAP has emerged as India’s foremost pallet pooling enterprise, catering to an array of industries including e-commerce, consumer durables, beverages, fast-moving consumer goods, and automotive. LEAP’s comprehensive offerings encompass equipment pooling, returnable packaging, inventory management, transportation, and repair and maintenance services.
The company proudly boasts a robust network of 21 warehouses dispersed across over 3,500 customer locations. Its operational prowess extends to managing an impressive inventory of over 6 million assets, including pallets and containers, strategically positioned throughout India.
In a show of confidence, Morgan Stanley made a strategic investment of $25 million in LEAP India in 2021. The same year witnessed LEAP securing an additional $34 million in funding from a secondary funding round led by investors including Schroder Adveq and IIFL fund.
Media outlets have reported LEAP’s aspirations to go public, aiming to raise approximately Rs 1,000 crore through an initial public offering (IPO). KKR’s decision to invest in LEAP capitalizes on the favorable economic currents in India, marked by a concerted drive toward enhancing supply chain and logistics efficiencies through modernization and automation.
As Indian enterprises progressively direct their focus toward core operations and seek to optimize their logistics frameworks sustainably, platforms like LEAP are uniquely poised to furnish premium and streamlined supply chain solutions. KKR aptly emphasizes this strategic alignment, highlighting the significant potential inherent in LEAP’s capabilities.
Furthermore, KKR’s investment forms an integral component of its expanding Asia infrastructure strategy. Notably, earlier this year, KKR channeled an additional $250 million into India’s Serentica Renewables, following a $400 million investment just months prior. In the preceding year, KKR, in partnership with Hero Group, committed $450 million to the renewable energy arm of Hero Future Energies (HFE). A separate milestone emerged in August 2022, as KKR unveiled the Highways Infrastructure Trust (HIT), marking the establishment of its third infrastructure investment trust within India’s borders.
