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In a Rs 550-crore all-cash deal, private equity firms Samara Capital and Xponentia Fund Partners have acquired express logistics company Spoton Logistics.
This deal involves the buyout of the entire holding (near 100 per cent) of private equity firm India Equity Partners, which had become the sponsor of Spoton in January 2012, by acquiring the road express business of multinational company TNT.
“We are delighted to have the new investor group on board in the next phase of our journey towards excellence and leadership,” said Abhik Mitra, MD and CEO, Spoton Logistics. “Their support for strong management teams to run the company, whilst playing a key role as a value-added partner focused on business strategy, internal controls, governance, financial management, and identifying and supporting growth opportunities, through business alliances and or M&A, will bring rich rewards to all. The existing Spoton leadership team will continue to drive and execute the next phase of Spoton’s growth strategy, working closely with the Samara and Xponentia teams,” he added.
Mitra told BusinessLine that it was "business as usual" for Spoton, although the sponsors have changed. He also said the company had no immediate plans to raise capital for growth. "We don’t need to raise capital now," he said.
Since January 2012, under CEO Abhik Mitra’s leadership, Spoton has established a national network and grown to be recognised as a leading technology-led express logistics provider to over 4,000 corporate and SME customers across industries.
Aided by the new investor group’s global network, Spoton also plans to explore business alliances with leading global logistics players to boost revenue and growth opportunities for the company.
“The Spoton leadership team has done a fantastic job in building a defensible and profitable proposition in the opportunities-rich logistics sector, which is seeing and will continue to see the tailwinds due to GST, e-way bill and other initiatives. Spoton’s success has been driven by strong corporate governance, an outstanding management team, supported by a pan-India network, covering 20,000-plus pin codes, which is driven by a global quality network engineering, led by technology and analytics. We look forward to partnering with them for an equally exciting second innings,” said Abhishek Kabra, Director, Samara Capital.
An entrepreneurially-run private equity firm, Samara focuses on mid-market buyouts across sectors in partnership with best-in-class management teams.
“We are excited to be part of Spoton’s journey to becoming a leading logistics company in India. Abhik leads an entrepreneurial management team that has leveraged technology to build scale and provide great customer service. As the introduction of GST transforms the logistics industry in India, working with Samara and the management team, we see exciting possibilities to build SpotOn into a great company,” said Devinjit Singh, Managing Partner, Xponentia.
Xponentia is an India-focused mid-market private equity firm that provides entrepreneurial management teams with capital and capabilities to build valuable businesses.
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