Flipkart-backed truck aggregator Blackbuck files DRHP for ₹550 cr IPO

It has been a busy time for the primary market, as many companies have been raising funds via the IPO route since the beginning of the new financial year 2024-25 (FY25). Blackbuck (Zinka Logistics Solutions Private Limited), a logistics services provider, has also joined the long list of companies going public, according to reports, as it has filed the draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI).

The company will raise ₹550 crore via a fresh issuance of shares and an offer-for-sale (OFS) of 2.16 crore shares, as per reports.

The company’s founders, Rajesh Yabaji, Chanakya Hridaya, and Ramasubramanian Balasubramaniam, will participate in the OFS. According to reports, Yabaji is likely to sell 22 lakh shares, while Hridaya will offload 11 lakh shares, and Balasubramaniam is expected to offload 11 lakh shares.

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Blackbuck investors, such as Tiger Global, Accel, International Finance Corporation (IFC), and Flipkart, will also participate in the OFS. According to reports, Accel will sell more than 52 lakh shares, Tiger Global will offload nearly 9 lakh shares, Flipkart will divest close to 4 lakh shares, and IFC is likely to sell over 17 lakh shares.

In FY24, Blackbuck’s revenue from operations grew 69% to ₹297 crore compared to ₹176 crore in FY23. The online truck aggregator’s net loss narrowed to ₹194 crore in FY24 from ₹290 crore in FY23, according to reports citing the company’s DRHP.

Blackbuck will use the money generated via the public issue to invest in its Non-Banking Financial Company (NBFC) arm. A portion of the funds will be used by the company for marketing and to fund product development, reports mentioned.

Blackbuck, a logistics company established in 2015, operates as an online platform providing payments, telematics, loads marketplace and vehicle financing services.

According to reports, the company became a ‘Unicorn’ after achieving a valuation of $1.02 billion in its Series E funding round in 2021. A unicorn is a startup with a minimum valuation of at least $1 billion.

Reports claimed that the Series E funding round was led by US-based Tribe Capital, IFC Emerging Asia Fund and VEF.

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