SpiceXpress to receive $100 million from UK group

A UK-based group will invest USD 100 million in SpiceJet's SpiceXpress and Logistics subsidiary on Monday.

Recently, SpiceJet hived off SpiceXpress, which is facing financial difficulties and an insolvency filing by an aircraft lessor.

Last week, the airline announced it would invest USD 50 million in reviving 25 grounded aircraft.

SpiceXpress will receive USD 100 million from the SRAM & MRAM Group in the United Kingdom.

As part of the investment deal, both sides have signed a Memorandum of Understanding (MoU), the airline announced on Monday.

Additionally, SpiceXpress and aircraft lessor Carlyle Aviation Partner entered into a debt restructuring agreement in which the latter bought a stake in SpiceXpress at a future valuation of USD 1.5 billion (Rs 12,422 crore).

The USD 100 million investment will enable SpiceXpress to grow, expand, and provide customers with a more streamlined and efficient service, said SpiceJet Chairman and Managing Director Ajay Singh.

The SRAM & MRAM Group has interests in agricultural and agro-food products, neural networks, artificial intelligence, hedge fund management, hospitality services, and media and publishing.

Five SpiceJet planes have been deregistered so far this month, a development that comes as rival Go First declares bankruptcy and shutters its operations.