City-based supply chain solutions company LEAP India plans to raise Rs 100 crore through debt to expand wooden pallet capacity and increase its footprints. “We have raised around Rs 110 crore last year through Series B funding from existing as well as new investors. We are now looking at raising around Rs 100 crore through bank loans to meet our capital expenditure plans,” LEAP India Managing Director Sunu Mathew told PTI today.
“We are aiming to garner a significant market share in the asset pooling space which otherwise has been a highly fragmented and unorganised market,” Mathew added. Earlier, the company had raised funding from Mayfield and Rishabh Mariwala. The company also saw participation from new investors like IndiaNivesh Growth Fund, Sixth Sense and TCI Ventures.
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Founded in July 2013, LEAP is fast expanding its customer base, pan-India network and technological capability in the business of renting and pooling wooden pallets and foldable large containers. It currently supplies about one million pallets made of wood imported from Russia and 20,000 containers to over 200 Indian companies as well as MNCs in the FMCG, consumer durable, beverages and auto space.
We now plan to expand the capacity to three million pallets by 2020, Mathew said. With the new investments and growing demand from customers, the company expects its revenue to touch Rs 100 crore this fiscal from Rs 37 crore logged last year and it aims to achieve turnover of Rs 280 crore by 2020, he added.
“With the launch of country’s largest ever tax reform of GST, warehouses sizes are set to get larger. Improving efficiency in the supply chain and scaling up these large warehouses would be difficult without the usage of pallets,” said the MD. Leap has 14 manufacturing centres and 22 warehouses across the country.