SRAM MRAM Group, a UK-based diversified company, will invest $100 million in SpiceXpress and Logistics Pvt Limited. As part of the investment deal, both sides signed a Memorandoum of Understanding, MoU SpiceJet Limited said in a regulatory filing on Monday.
The hive was completed by airline SpiceJet today, replacing SpiceXpress' cargo and logistics division into a separate company, paving the way for the company to raise funds independently. The separation has been effective from 1 April.
The airline said it would strengthen its balance sheet and wipe out a significant portion of its negative net worth and unlock substantial value.
SpiceJet Chairman and Managing Director Ajay Singh 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. This investment will help SpiceXpress to grow and expand and provide a more streamlined and efficient service to its customers, he said.
The MoU with SRAM MRAM Group followed a restructuring agreement with aircraft lessor Carlyle Aviation Partners wherein the former picked up a stake in SpiceXpress at an anticipated future valuation of $1.5 billion or Rs12.422 crore, SpiceJet Limited said.
We see excellent growth opportunities in the logistics and cargo space in India, said SRAM MRAM Group Chairman Sailesh Lachu Hiranandani.
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 said.
SRAM Group's interests range from 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.