Samara Capital has bought a 100% stake in Spoton Logistics for $100 million from India Equity Partners, a private equity fund.
Samara Capital has bought a 100% stake in Spoton Logistics for $100 million from India Equity Partners, a private equity fund, according to a source aware of the transaction. Spoton Logistics, formely known as Startrek Logistics, was formed in December 2011, when IEP bought the domestic business from TNT India. The company has its registered office and its head office in Bengaluru, with a network of around 1,000 people across India, according to its website.
The firm has 3 regional offices, 11 hubs and 8 depots in the country. It has a business-to-business (B2B) model — providing logistics solutions to industries and segments like hi-tech, automotive, engineering, pharmaceutical, electronics and electrical and lifestyle and retail.
“The management as well as its key employees, by the virtue of their employee stock options (Esops) also hold a relevant stake in the company,” the source said.
Krishna Chandrasekar is the chief financial officer of Spoton Logistics while Nikhil Saxena is listed as the director-operations on the company’s website.
Spoton Logistics has an annual revenue of about Rs 600 crore (on an annualised basis) with an earnings before interest tax depreciation and amortisation (Ebitda) margin of about 8%, according to the source. “This is close to the industry average of 8-10%. Spoton Logistics is a debt-free company with healthy cash flows,” the source indicated.
The company serves about 20,000 pin codes across the country and has about 2,000 customers, the source added. “This was one of the only transactionabe deals in the logistics space as the others are either owned by foreign strategic players or are in the listed space. Going forward, Samara Capital may look forward to expand the company’s services into air express and third-party logistics as well. It is a high growth business and the company is very professionally managed. Express logistics is the only segment in logistics that is growing at a rate of 20%,” the source added.
Samara Capital and IEP did not respond to email requesting details on the deal till the time of going to press. Spoton Logistics could not be contacted for the story.
Edelweiss Financial Services was the advisor to Spoton Logistics as well as IEP.
Samara Capital calls itself an entrepreneurially-run India-focused private equity firm. It invests in emerging Indian companies (EICs) — which it defines as those businesses that are poised for rapid transformation, have strong entrepreneurial-minded management team and a favourable industry context.
IEP is an India-focused mid-market private equity fund focused on control and significant minority transactions. IEP Fund Advisors currently manages two funds with cumulative assets of approximately $400 million. The investments are themed around India’s consumption story coupled with strong sector-specific enablers in consumers, logistics and other business service segments, as stated on its website.