Hong Kong-based private equity firm Fung Capital has agreed to invest about $30 million for a 26% stake in Future Group's logistics arm Future Supply Chain Solutions. The company will use the capital to expand the firm's supply-chain network.
The agreement was signed today in Hong Kong between Future Group founder and CEO Kishore Biyani and Fung Capital, the private equity investment arm of the Li & Fung Group.
The capital will be investd in phases with $10 million coming in immediately. PTI reported, quoting Biyani, that Fung Capital has taken up to 26 per cent stake. A statement said that the capital would be used for enhancement of the logistics infrastructure, strengthening of technology platforms and expansion of supply chain network of the company.
The company would also change the name from Future Logistics Solutions to Future Supply Chain Solutions. The company currently operates 30 supply chains, services over 1,100 retail outlets with a fleet of over 500 vehicles playing across India.