Samara Capital backed Spoton Logistics acquires RTS Logistics

Business Services

DATE January, 2020

TYPE M&A

Samara Capital backed Spoton Logistics acquires RTS Logistics

About

RTS Logistics

RTS provides third party logistics services to companies in the auto components industry. The company was founded in 2008 and has strong presence in automotive hubs across Chennai, Pondicherry, Hosur, Gurgaon, etc. It provides warehousing, transportation and inventory management services for the inbound, outbound and after market requirements of its clients.

Spoton Logistics

Spoton Logistics started its journey in 2012, when a private equity firm ‘India Equity Partners’ bought the domestic business from TNT India. In 2018, Spoton partnered with a consortium of investors led by Samara Capital to invest into and build out the next stage of Spoton’s growth. Spoton Logistics provides logistics services to an array of sectors viz. Hi-Tech, Automotive, Engineering, Pharmaceutical, Electronics & Electricals and Lifestyle & Retail. They operate pan India covering 230 + locations and over 20,000+ pin codes.

Background

We are pleased to announce the acquisition of controlling stake in RAAG Technologies and Services Pvt. Ltd. (“RTS”), a company providing third party logistics (3PL) services by Spoton Logistics Private Limited (“Spoton”).

RAAG Technologies is an express delivery company operating across 300 locations and delivery from its 38 service centres. The company was founded in 2008, in Chennai, Tamil Nadu and has a strong presence across major automotive hubs in South India and Gurgaon counting several blue chip names as its customers. It follows an asset light model wherein it operates a fleet of vehicles and runs warehouses on lease, freeing up capital on investments into technology for its customers thereby catering to their inbound, outbound and after-market logistic requirements.

Veda Corporate Advisors (“VedaCorp”) was the exclusive financial advisor to transaction. VedaCorp provided comprehensive transaction advisory services including deal structuring and negotiation of key commercial terms, leading to the successful closure of the transaction.

“Trust is the basis of an advisor and VedaCorp team epitomized it. As we went through the transaction discovery process, VedaCorp helped evolve the structure of the deal a few times based on new market inputs and varied feedback from several counter-parties. VedaCorp was always trying to get the best deal possible, aligning us on commercials and what was best for the future success of our business. After obtaining our term sheet, VedaCorp also played a very effective project management role bringing myriad pieces together. I am happy to recommend VedaCorp to every company that requires a trusted banking advisor.

Narasimhan Raghavan

Founder & Director, RTS

“RTS promoted by a first generation entrepreneur has over the years showcased its strong ability in becoming the go-to logistics partner for marquee clients.

This transaction offers strong synergies to both parties and the partnership would help the company in its next phase of growth and to broaden its offerings to a larger customer group.”

Atul Saraogi

Associate Director