February 23, 2016

Private equity firm, Asia Climate Partners, has acquired a stake in Delhi-based cold chain logistics company, ColdEX Logistics Pvt Ltd, according to Deal Street Asia. Under the terms of the transaction, a portion of the stake that Asia Climate Partners buys will enable India Equity Partners, which has been a stakeholder since 2010, to exit the company.

Although the financial terms of the deal were not released, the Hindu Business Line reports that sources close to the deal revealed that the total fundraising equaled Rs 250 cr (US$36.42 million), and that the investment will be made in multiple tranches over the next two years, with the first tranche totaling Rs 135 cr (US$19.66 million) already completed.

With a fleet of 850 refrigerated reefer trucks, 55 branches, six distribution centers, and 1,500 employees, ColdEX is one of India’s largest cold chain logistics companies, serving customers including Burger King, Cadbury, Yum Brands, Starbucks, and Amul with temperature controlled transportation services, warehousing, and delivery services.

India has had notorious challenges in regard to food waste, experiencing yearly losses up to 40% due to spoilage and lack of proper infrastructure.

“We see tremendous potential in both the company and the cold chain logistics sector in helping improve resource efficiency and reduce food wastage in India. Asia Climate Partners will bring its institutional support to help the company build a pan-India presence and provide a total solution to its customers,” said Anand Prakash, managing director of Asia Climate Partners reports Deal Street Asia.

The company plans to use the funds to support the expansion of both its warehouses and its transportation network across the country. Over the next three years ColdEX also plans to invest a total of Rs 250 cr (US$36.42 million) to add an additional 50,000-pallets to its cold chain warehousing capacity.

The Economic Times reports that Gaurav Jain, Founder & Managing Director of ColdEX, commented on the deal, adding, “This investment will enable ColdEX to ramp up capacity and achieve our vision of becoming a total cold chain solution provider to our customers by building world class infrastructure and an affordable and reliable supply chain.”