Blackbuck Converts to Public Company in Preparation for IPO

• ByStartupStory     |    June 17, 2024

Blackbuck, the online trucking platform backed by Flipkart, has announced its conversion into a public company, a significant step towards its anticipated initial public offering (IPO). The company’s board approved a resolution to change its status from private to public, leading to a name change from Zinka Logistics Solutions Private Limited to Zinka Logistics Solutions Limited.

According to regulatory filings, the transition to a public company will enable Blackbuck to “raise funds from a large pool of investors to meet the growth requirements and vision of the company.” This strategic move is expected to facilitate the company’s expansion and strengthen its market position.

Founded nine years ago, Blackbuck offers B2B logistics solutions for long-haul trucking, serving large enterprises and medium and small medium enterprises (MSMEs) with intercity logistics services. The company has raised over $350 million in funding to date, including a notable $67 million Series E round led by Tribe Capital, IFC Emerging Asia Fund, and VEF, propelling Blackbuck into the unicorn club.

As per startup data intelligence platform TheKredible, Accel holds the largest external stake in Blackbuck with 18.58%, followed by Quickroutes International and Sans Capital Growth. The company’s co-founders Rajesh Yabaji, Chanakya Hridya, and Ramasubramaniam Balasubramaniam collectively hold 26.82% of the company.

Blackbuck’s financial performance has seen a decline in recent years. The company’s revenue from operations decreased by 15.5%, from Rs 833 crore in FY22 to Rs 704 crore in FY23. Despite the drop in revenue, Blackbuck managed to control its expenses, reducing its losses from Rs 285 crore in FY22 to Rs 290 crore in FY23.

Looking ahead, Blackbuck is planning to go public in the second half of FY25 with the goal of raising up to $300 million in capital. Notably, Blackbuck will be among the few tech companies to pursue an IPO despite a decline in revenue over the past three years (FY21 to FY23). The company has yet to file its annual report for FY24.

Blackbuck’s journey to the public markets follows the trend of several new-age internet companies listing in 2024, including TBO Tech, Digit Insurance, and Awfis. Ixigo is also set to list on June 18, with Ola Electric, MobiKwik, and FirstCry preparing for their IPOs later this year.

In a statement reflecting on the company’s growth and future, Blackbuck’s co-founder Rajesh Yabaji said, “The proposed conversion will help the company to raise funds from a large pool of investors to meet the growth requirements and vision of the company.”

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