SpiceXpress, the cargo division of SpiceJet, on Monday announced that UK-based SRAM & MRAM Group will invest $100 million in SpiceXpress and Logistics Pvt. Limited. The airline said that both sides have signed a Memorandum of understanding (MoU) as part of the investment deal.
In a filing with the stock exchanges, SpiceXpress said, “The MoU with SRAM & MRAM Group follows a restructuring agreement with aircraft lessor Carlyle Aviation Partner wherein the latter picked up a stake in SpiceXpress at an anticipated future valuation of $1.5 billion or Rs 12,422 crore.”
SpiceJet Ltd hived off its cargo and logistics business SpiceXpress into a separate entity — SpiceXpress and Logistics Pvt Ltd — from April 1, 2023, a move that paved the way for the latter to raise funds independently.
SpiceJet chairman and MD Ajay Singh said, “SpiceXpress is delighted to enter into a MoU with SRAM & MRAM Group for a $100 million investment into the Company. We had recently hived off SpiceXpress into a separate Company as we were extremely confident and bullish about the potential of our tech‐enabled logistics business and this MoU reaffirms our belief.”
“This investment should help SpiceXpress to further grow and expand and provide a more streamlined and efficient service to its customers,” Singh added.
Headquartered in the UK, SRAM & RAM group is one of the leading international conglomerates with offices in Cambodia, South Africa, Indonesia, Malaysia, Bahrain, Georgia, India & Bangladesh. The group’s interests are spread across multifarious services, business verticals and operations viz., agricultural and agro‐food products, and many more.
SRAM & MRAM Group chairman Dr Sailesh Lachu Hiranandani said, “We are pleased to join hands with SpiceXpress in its promising future and growth story. We see excellent growth opportunities in the logistics and cargo space in India.”
“We are confident thatSpiceXpress will contribute to India’s growth story. In a short time since its inception, the Company has shown exceptional growth in the nascent air cargo market and we see a tremendous potential for the Company in India’s fast growing cargo and logistics market,” the SRAM & MRAM Group chairman added.