Emerging markets-focused and asset-light logistics company 20Cube Logistics Pte Ltd has raised $17 million (Rs 90 crore) from Zephyr Peacock and Singapore-based private equity fund Credence Partners.

Chennai-headquartered 20Cube specialises in international transportation and contract logistics services. Currently, the company has presence in India, Sri Lanka, Bangladesh, Malaysia, Singapore, China, Australia, UAE and Uganda.

“Logistics-related activities in the emerging markets are growing rapidly due to strong GDP growth and a shift in the global trade lanes from developed markets to emerging markets,” said Sachin Maheshwari, director at Zephyr Peacock India.

According to him, with 20Cube’s presence in India and other emerging markets and its strong focus on information technology, it is well positioned to benefit from this opportunity.

“The founders and management team have worked together for many years and are very experienced logistics professionals. We are impressed with their passion for the business and their excellent execution track record,” said Tan Chow Boon, managing partner at Credence Partners Pte Ltd.

Logistics has attracted a number of private equity firms in the recent past. Over the past one year, firms such as General Atlantic, KKR, New Silk Route and Ambit Pragma, among others, have struck deals to invest over $200 million in logistics and air-freight companies, according to data collated by VCCEdge, the financial research platform of VCCircle.

Last week, Everstone Capital invested Rs 220 crore ($40.7 million) in Delhi-based Transpole Logistics Pvt Ltd, a supply chain solutions firm, for an undisclosed stake.

Two months ago, IFC, the private sector investment arm of the World Bank Group, said it would lend around $25 million to General Atlantic and India Equity Partners-backed Fourcee Infrastructure Equipments, a logistics firm specialising in bulk logistics solutions.

(Edited by Sanghamitra Mandal)

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