Welspon One secures funding worth Rs.2,275 crore to develop 'Warehousing Assets'

An integrated fund and development management platform, Welspun One, concludes its second fund, raising a total of Rs. 2,275 crore. The capital was raised from a diverse group of approximately 800 investors, comprising high-net-worth individuals, ultra-high-net-worth individuals, family offices, corporates, and domestic institutions.

The lifted capital will be utilized to develop new-age warehousing properties. The company is focusing on the second fund includes urban distribution centres, cold chain facilities, agro logistics, and port and airport-based logistics.

The company has allocated nearly 40% of its investible capital across four investments. The company is expecting to utilize the remaining capital over the next three to four quarters, which will add 8 million square feet to its existing 10 million square feet portfolio in total it stands approximately 18 million square feet. The expansion entails a total project outlay of around $1 billion.

The Chairman of Welspun World, Balkrishan Goenka enthusiastically told, "Our commitment to advancing critical logistics infrastructure is in perfect alignment with India's strategic objective of reducing logistics costs from 14% to 8%, thereby enhancing the global competitiveness of our industries."

He also stressed on saying by investing in essential infrastructure, the fund aims to streamline logistics operations and stimulate industrial growth.

The Managing Director of Welspun One, Anshul Singhal mentioned, "Embarking on the exploration of new-age warehousing assets represents an exciting journey for us at Welspun One. Our progress has been remarkable, having successfully established a well-capitalized platform poised to achieve an AUM of over USD 1 billion."

The company has raised Rs.500 crore in its first fund, which is fully committed across six investments, in which the first fund covers a development potential of 7.2 million square feet over 300 acres in five cities.

Approximately half of the project has been delivered at present, and the rest is anticipated to be finished within the upcoming four to six quarters. The initial fund's portfolio features prominent clients like Tata Croma, Delhivery, FM Logistics, Asian Paints, and Ecom Express.

The company is one of the popular warehousing platform of the $5 billion global conglomerate Welspun World. The company is focusing on to reduce logistics costs significantly and improve the global competitiveness of Indian industries.

They have planned to continue to build its current foundation by diversifying its investor base,and meeting future growth requirements by augmenting retail investor participation with institutional capital.