Private equity funds pump in $1.1 billion in logistics, warehousing sector

The key factors driving PE players' interest in logistics and warehousing are government policies, strong economic fundamentals, and the growth in organised retail and e-commerce

Private equity (PE) funds have pumped in excess of $1.1 billion in the logistics and warehousing sectors between the first quarter of 2017 and the first quarter of 2019, as against zero investment in 2015 and 2016 combined.

Infrastructure status, the multi-modal logistics park policy, and implementation of the GST had all led to PE firms’ greater interest in the logistics and warehousing sectors.

Shobhit Agarwal, managing director and chief executive of ANAROCK Capital, said that Bengaluru, Chennai and Hyderabad saw maximum interest by investors, followed by Mumbai and Pune.

"The logistics sector had a massive jump-start in the first quarter of 2019,