Fung Capital agrees first Indian deal

Hong Kong-based Fung Capital has agreed to invest $30 million in Future Supply Chain Solutions, marking the firm’s first investment in India. 

Fung Capital did not respond to requests for comment at press time.

Founded in 2007, Future Supply Chain Solutions, a subsidiary of Indian conglomerate Future Group, is a consumer logistics company involved in the supply chain management of product categories such as fashion, food, home products and general merchandise. The company currently services more than 1100 retail outlets across India and also provides services such as inventory planning and control support, vendor management and quality assurance.

The investment will be used to improve the company’s logistics infrastructure, bolster its technology platforms and expand its supply chain network, according to a Future Group statement.

India’s modern retail sector is seeing strong growth, which will in turn drive the need for integrated logistic providers, Rajesh Ranavat, a managing director at Fung Capital, said in the statement.

Fung Capital is the private equity arm of Hong Kong conglomerate Li & Fung Group. The firm makes venture, growth and late stage investments across Asia, Europe and the US. It primarily targets consumer-related industries including branded fast moving consumer goods, cosmetics and personal care and pharmaceuticals and healthcare.

Future Group's financial arm, Future Capital Holdings, has a private equity division that currently advises Indivision India Partners, a $425 million growth capital fund. The fund has made 16 investments so far, according to its website. Future Capital Holdings also has a real estate arm, which presently manages four real estate funds.