From the Press Release:
Swastik Roadlines Private Limited, one of the leading food cargo supply chain service providers, raised growth equity financing of around US$ 10 million from India Equity Partners in return for a significant minority stake. This is the first round of equity fundraising by the company and subsequent rounds of funding are planned.
Swastik has very quickly grown to become one of the leading cold chain logistics solutions service providers in India under the brand ‘Coldex’ with a fungible fleet that is expected to cross 500 vehicles shortly. The Company offers pan-India solutions to marquee clients for both long haul (primary) movement of temperature sensitive cargo as well as intra-city secondary distribution in over 55 cities. In addition, the Company offers surface transportation for specialized dry cargo.
Mr. Gaurav Jain, Managing Director of Swastik, says: “We are pleased to partner with India Equity Partners in our next stage of growth. We believe that this association would facilitate in strengthening our cold chain capabilities and in developing best-in-class systems that will help in maintaining the Company’s growth trajectory”.
Mr. KK Iyer, Managing Director of India Equity Partners (“IEP”) who has deep logistics experience, says of this investment: “IEP is extremely excited to partner with Swastik because of its unique positioning underpinned by the strong Indian consumer growth story. We look forward to working actively with Gaurav and his team as significant and active shareholders, both at an operating and board level, to help build the market leader for cold chain services in India. We will bring our considerable operational experience in facilitating the implementation of management systems and human resource planning as a backbone to Swastik’s exciting growth plans”.
Mr. Sid Khanna, Chairman of India Equity Partners, says: “This investment is consistent with IEP’s strategy of backing segment leaders with a competitive edge. In addition to our operational value-add, IEP has deep strategic relationships in the market segments that Swastik operates in and we will leverage these to support Swastik’s growth”.
Utopia Advisors Private Limited, a boutique Investment Bank was the exclusive financial advisor to Swastik for this equity fundraising.
Abhishek Jhawar, Managing Director of Utopia Advisors, says: “The Indian cold chain market is largely serviced by several players from the unorganized sector. There is immense scope for investment and development in this sector. Swastik has succeeded in differentiating itself and is poised for significant growth and performance”.