BlackBuck Plans IPO, Aiming to Raise $300 Million in Funding

• ByStartupStory     |    March 4, 2024

Flipkart-backed logistics startup BlackBuck is preparing for an initial public offering (IPO) in the next fiscal year, with plans to raise up to $300 million. According to sources, BlackBuck has appointed merchant bankers and lawyers to advise on the IPO and has begun preparing its draft red herring prospectus. “The company is looking to hit the market with its IPO in the second half of FY25,” one source revealed.

Founded in 2015, BlackBuck operates as a B2B online trucking platform, connecting companies in need of shipping services with truckers. Additionally, it offers services such as selling GPS tracking devices, FASTags, and fuel cards. “Its customers include companies such as Hindustan Unilever, Reliance Petrochemicals, Hindustan Zinc, and Marico,” highlighting its diverse client base.

The IPO will consist of a combination of a fresh issue of shares to raise capital and a secondary sale of shares by existing investors. The final size of the offering will depend on the quantum of the secondary share sale, which is still under discussion. “These are early days, and the company and its investors are still in discussions over the secondary share sale component of the deal,” the source explained.

Proceeds from the IPO will be utilized to scale up BlackBuck’s services business, which has been a recent focus, as well as to grow its core freight business. “BlackBuck became a unicorn in 2021 when it raised $67 million as part of its Series E funding round,” marking a significant milestone in its growth trajectory.

Financially, BlackBuck’s consolidated revenue declined by 15% in FY23, while its loss marginally increased during the same period. “Tech startups have had a tough time since 2022 as funding has dried up,” reflecting the challenging landscape for startups in recent years.

Despite the challenges, there is optimism for new-age technology company IPOs in the Indian market this year. Ola Electric, Go Digit General Insurance, FirstCry, Swiggy, and PayU are among the companies reportedly preparing for IPOs, signaling a potential resurgence in the IPO market.

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