Investcorp puts $60M into 20Cube logistics, eyes $1B India bet
What's the deal? InvestcorpDealroom has a profile for this one. Try Dealroom → has invested ₹500 crore ($60 million) in 20Cube 3PL SolutionsDealroom has a profile for this one. Try Dealroom →, the India contract logistics arm of Singapore-based 20Cube Logistics. The growth equity round makes the firm's latest bet on India's third-party logistics sector.
What does 20Cube do? Its India business operates more than 7 million sq. ft. of warehousing and serves enterprises across consumer durables, chemicals, automotive components, and engineering goods. The deal carves it out from the parent company, which will keep its international freight-forwarding business.
What's the money for? Investcorp wants to build 20Cube into a platform for organic growth and acquisitions. The firm and 20Cube plan to invest a further ₹500–750 crore buying up contract logistics businesses to fold into the platform.
The company aims to expand warehousing to more than 20 million sq. ft. over the next four to five years, up from 7 million. It has grown 25–30% and remains high margin, Investcorp said.
Why now? "We are putting in a substantial amount primarily into the company to be able to drive growth on day one, and we're already starting to look at M&A opportunities to create this as a platform play within the logistics sector," said Gaurav Sharma, head of India investment business at Investcorp.
What's the endgame? Investcorp plans to invest $1 billion in India over the next five years, drawn by logistics and manufacturing. It has already deployed about $1 billion in Indian companies, including InCred and Wakefit, and is preparing to raise a larger fund as mid-market cheque sizes rise.
The signal: Investcorp is betting on consolidation as Indian logistics shifts from fragmented operators to organised third-party providers. "India is at just the beginning of a long journey of that formalization and a more organized 3PL," Sharma said, pointing to complex supply chains, deeper reach into smaller cities, and rising demand for tech-enabled services.
Read more: LiveMint
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