Skan Marine Services Acquired by Leap India
- ByStartupStory | February 25, 2023
LEAP India, a startup offering supply chain solutions has announced the acquisition of SKAN Marine, an asset renting firm based in Mumbai. Although the acquisition cost was not disclosed, this strategic move is expected to enhance LEAP’s position in the forklift renting sector and drive the turnover and EBITDA growth of both companies. According to a statement, the acquisition will strengthen LEAP’s market presence and offerings.
LEAP India has recently acquired SKAN Marine, a Mumbai-based asset renting firm, which is expected to help LEAP India become the second-largest company in India’s forklift renting space. By combining with its subsidiary Taron, LEAP India aims to secure the top position in the market within the next 12 months. SKAN Marine, founded in 1983, offers forklift and asset renting services to a diverse range of industries, including FMCG, glass, tire, steel, and heavy metal, with a nationwide presence and 75 clients, including Reliance Industries, Nestle India, Honda Motors, Piramal Glass, LG, and Owens Corning. This strategic acquisition is expected to help LEAP India expand its market share and offerings.
Suresh Sood, the Managing Director of SKAN Marine Services, expressed that the acquisition by LEAP India is a natural progression due to the shared synergy between the two companies. Both companies have a similar growth trajectory and recognize the importance of strategic planning to increase volume and profits in the supply chain industry. With prices on the rise and demand increasing, it is essential to determine a bottom line. LEAP India’s acquisition of SKAN Marine Services is significant as it follows the startup’s funding round of $34 million, which occurred approximately eighteen months ago. The funding was led by Schroder Adveq and IIFL Fund, and early investors, such as IndiaNivesh, Mayfield Fund, and Sixth Sense Ventures, partially exited the company.
LEAP India, founded by Sunu Mathew in 2013, is a Mumbai-based startup that provides transportation and storage management, inventory management, and SAP IT solutions to organizations throughout India. With the recent acquisition of SKAN Marine, LEAP India aims to establish itself as a top player in the forklift market, especially in areas where SKAN Marine has a strong presence, while also expanding its existing customer base. The startup faces competition from other logistics tech startups such as Porter, LetsTransport, and Algorhythm.
According to a Statista report, India’s supply chain market is expected to grow from $250 billion in 2021 to a $380 billion industry by 2025, with a compound annual growth rate (CAGR) of 10-12% during the period. This growth potential is a driving force for LEAP India and other logistics tech startups operating in India.
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