Trucking marketplace BlackBuck has received the final observation from the Securities and Exchange Board of India (SEBI) for its highly anticipated initial public offering (IPO), as per a press release. BlackBuck, which is backed by Accel and Flipkart, had earlier filed its draft red herring prospectus with SEBI in July 2024.
The company plans to raise ₹550 crore through a fresh issue of shares, accompanied by an offer for sale (OFS) of 21.6 million shares by its existing shareholders. Zinka Logistics Solutions Limited, the parent company behind BlackBuck, intends to allocate ₹200 crore for sales and marketing and an additional ₹140 crore towards strengthening its non-banking financial company (NBFC), Blackbuck Finserve. This move is aimed at bolstering its capital base to meet future financial requirements. Furthermore, ₹75 crore will be invested in product development to enhance its platform and offerings.
The IPO will also see BlackBuck’s founders—Rajesh Yabaji, Chanakya Hridaya, and Ramasubramanian Balasubramaniam—selling a total of 4.4 million shares combined. Rajesh Yabaji will divest 2.2 million shares, while both Hridaya and Balasubramaniam will each sell 1.1 million shares. Accel, one of BlackBuck’s early investors, will sell up to 4.3 million shares through its Accel India IV (Mauritius) fund and an additional 923,282 shares via its Accel Growth Fund V LP fund.
Growth and Revenue
BlackBuck has established itself as a leading player in the trucking logistics space, providing truck operators with various solutions such as payments, telematics, load management, and vehicle financing through the BlackBuck app. The company also facilitates vehicle financing for truck operators, enabling them to purchase used commercial vehicles or secure loans on existing ones. BlackBuck generates revenue from loan service fees and other charges related to loan disbursement and collections.
According to the press note, BlackBuck’s consolidated revenue from continuing operations witnessed a significant jump of 69.01%, reaching ₹296.92 crore in FY24, compared to ₹175.6 crore in the previous fiscal year. The company also managed to reduce its EBITDA loss, narrowing it down to ₹138.7 crore in FY24 from ₹213 crore a year ago.
Facilitating Transactions
In FY24, Zinka Logistics Solutions facilitated over 413.34 million transactions, serving more than 250,000 users across India. This solidifies BlackBuck’s position as a dominant player in the logistics sector, especially as it continues to streamline and innovate services for truck operators.