New Delhi: India’s SpiceJet Ltd announced that SRAM & MRAM Group, a UK-based conglomerate, will invest a substantial amount of $100 million in its cargo division, SpiceXpress. This investment news caused shares of the budget airline to surge by as much as 4.8%. The timing of the investment is significant as it follows recent speculation about SpiceJet potentially filing for insolvency after the bankruptcy of its competitor, Go First.
To facilitate independent funding opportunities, SpiceJet had earlier separated SpiceXpress into a distinct entity, effective from April 1. This strategic move paved the way for the company to attract investments on its own. In February, aircraft lessor Carlyle Aviation Partners acquired a stake in SpiceXpress, leading to a restructuring agreement that played a role in SRAM & MRAM Group’s decision to sign the investment pact.
The conglomerate, headquartered in the United Kingdom, has diverse interests encompassing various sectors such as agriculture, agro-food products, neural networks, and artificial intelligence. With this investment, SpiceXpress aims to leverage the financial support to fuel its growth and expansion plans. The primary objective is to enhance the delivery of its services, making them more streamlined and efficient for its customers.
Ajay Singh, Chairman and Managing Director of SpiceJet, expressed his optimism about the investment, stating that it would enable SpiceXpress to continue its upward trajectory and further extend its reach. This significant infusion of funds from SRAM & MRAM Group demonstrates the confidence placed in SpiceXpress and its potential for future success.
Overall, the investment from SRAM & MRAM Group in SpiceJet’s cargo division is expected to provide a substantial boost to the company’s capabilities and competitiveness in the cargo services market. The funds will support SpiceXpress in expanding its operations, optimizing its service offerings, and delivering a superior experience to its valued customers.