BlackBuck, Flipkart-Backed Logistics Startup, Eyes IPO to Raise $300 Million
- ByStartupStory | March 5, 2024
Leading logistics startup BlackBuck, supported by e-commerce giant Flipkart, is gearing up to go public in the upcoming fiscal year with plans to raise an ambitious $300 million, according to informed sources.
“They recently appointed merchant bankers and lawyers to advise on their proposed initial public offering (IPO) and have started work on the preparation of their draft red herring prospectus. They are looking to file the DRHP with the full FY24 financial numbers. The company is looking to hit the market with its IPO in the second half of FY25,” revealed one of the sources.
Established in 2015, BlackBuck, operated by Zinka Logistic Solutions Pvt Ltd, operates as a B2B online trucking platform connecting companies in need of shipping goods with truckers and vice versa. The company also boasts a services business offering GPS tracking devices, FASTags, and fuel cards.
BlackBuck’s clientele includes major corporations such as Hindustan Unilever, Reliance Petrochemicals, Hindustan Zinc, and Marico, among others. The planned IPO will comprise a mix of fresh shares to generate capital for the business and a secondary sale of shares by existing investors.
“The eventual size of the offering will depend on the quantum of the secondary share sale, which is yet to be finalized. These are early days, and the company and its investors are still in discussions over the secondary share sale component of the deal,” noted the source.
The funds raised through the IPO will be directed towards expanding its services business, a strategic focus in recent years, and further development of its core freight business.
BlackBuck achieved unicorn status in 2021, securing a valuation of $1.02 billion during its Series E funding round, which raised $67 million. This round was led by US-based Tribe Capital, IFC Emerging Asia Fund, and VEF, with participation from existing investors such as Wellington Management, Sands Capital, and the International Finance Corporation.
BlackBuck’s consolidated revenue from operations witnessed a 15 percent decline in FY23 to Rs 704.18 crore, down from Rs 832.57 crore the previous year. The company reported a marginal increase in losses, reaching Rs 290.47 crore in FY23 compared to Rs 284.55 crore in the preceding year.
While tech startups faced challenges in funding since 2022 due to global interest rate hikes, the Indian IPO market is witnessing a resurgence. Ola Electric, Go Digit General Insurance, and FirstCry have filed draft IPO papers, while Swiggy and PayU are reportedly working on their respective IPOs expected to hit the market this year.
An email sent to BlackBuck did not elicit a response, and attempts to reach the company’s founder, Rajesh Yabaji, through text messages and email also went unanswered, as reported by Moneycontrol.
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