UK-based SRAM & MRAM Group to invest $100 million in SpiceXpress; signs MoU

SRAM & MRAM Group, the UK-based diversified group, will invest $100 million in SpiceXpress and Logistics Pvt Limited. As part of the investment deal, both sides have signed a Memorandoum of understanding (MoU), SpiceJet Limited said in a regulatory filing on Monday.

Recently, airline SpiceJet completed the hive off of its cargo and logistics division, SpiceXpress, into a separate entity, paving way for the company to raise funds independently. The separation has been effective from April 1.

The airline said that the hive off would strengthen its balance sheet and wipe out a substantial portion of its negative net worth, and unlock significant value.

Commenting on the investment, Ajay Singh, Chairman and Managing Director, SpiceJet, said, "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."

He added that this investment should help SpiceXpress to further grow and expand and provide a more streamlined and efficient service to its customers.

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 Limited said.

"We see excellent growth opportunities in the logistics and cargo space in India," Sailesh Lachu Hiranandani, Chairman, SRAM & MRAM Group, stated.

"We are confident that SpiceXpress 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," Hiranandani added.

SRAM & MRAM Group's interests are spread across multifarious services, business verticals and operations -- including agricultural and agro‐food products, neural networks, artificial intelligence, hedge fund management, forex management, hospitality services and solutions, information technology, media and publishing, embedded systems and infrastructure.

Also Read: Ratan Tata, Tiger Global-backed Upstox breaks even in FY23; revenue touches Rs 1,000 crore

Also Read: US-based investor Janus Henderson marks down PharmEasy’s valuation by half to $2.8 bn