PE funds to invest $ 17 million in 20Cube Logistics

Zephyr Peacock India and Credence Partners will pick up a minority stake in the logistics company

Private equity (PE) funds Zephyr Peacock India and Singapore-based Credence Partners have agreed to invest $17 million (Rs.90.4 crore) in 20Cube Logistics for a significant minority stake—the second PE investment this year in an Indian logistics firm.

Logistics activities in emerging markets such as India are growing rapidly due to strong economic growth as well as because of a shift in global trade lanes from developed to emerging markets, said Sachin Maheshwari, director, Zephyr.

“We want to capitalise on this differentiating factor. We have noticed that big players are focused on the west and developed markets and are just beginning to look at emerging markets. 20Cube is already a leading firm in developing economies,” he said.

For Zephyr, the investment is its 12th in India and its first in the country’s logistics segment.

The PE firm will assist 20Cube’s management team in strategy and business and management development. After the investment, Maheshwari and Credence’ managing partner Tan Chow Boon will join 20Cube’s board.

“We are glad to have found the appropriate private equity funds to partner with us through our journey. Our team is now complete,” said Mahesh Niruttan – Chief Executive Officer, 20Cube.

India’s logistics sector has been on the radar of PE funds for a while now. The increasing interest can be attributed to the fact that logistics companies have realized they can’t be mere transporters and are, therefore, becoming less asset-heavy and offering more services.