BlackBuck, the B2B online trucking platform run by Zinka Logistic Solutions Pvt Ltd, plans to go public in the next fiscal year. This move aims to raise up to $300 million, according to two sources familiar with the development. Established in 2015, BlackBuck connects companies needing to ship goods with truckers and offers additional services such as GPS tracking devices, FASTags, and fuel cards.
The IPO will combine a fresh issue of shares and a secondary sale by existing investors. The final size of the offering will depend on the extent of the secondary share sale, which is still under discussion. BlackBuck intends to use the IPO proceeds to scale up its services business and expand its core freight operations.
Sources close to the development said, “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.”
Customer Base and Market Position
BlackBuck serves prominent clients, including Hindustan Unilever, Reliance Petrochemicals, Hindustan Zinc, and Marico. In 2021, BlackBuck achieved unicorn status with a valuation of $1.02 billion after raising $67 million in a Series E funding round. Investors in this round included Tribe Capital, IFC Emerging Asia Fund, VEF, Wellington Management, Sands Capital, and International Finance Corporation.
Despite its growth, BlackBuck faced a 15 percent decline in consolidated revenue, dropping to INR 704.18 crore in FY23 from INR 832.57 crore in FY22. Additionally, the company’s losses slightly increased to INR 290.47 crore in FY23 from INR 284.55 crore in the previous year.
Tech startups have struggled since 2022 due to reduced funding as central banks raised interest rates to combat inflation. However, the Indian IPO market is seeing a resurgence.
Recently, companies like Delhivery, Mamaearth, Ola Electric, Go Digit General Insurance, and FirstCry have moved towards public offerings. BlackBuck’s conversion to a public company, now named Zinka Logistics Solutions Limited, positions it to attract a larger pool of investors to support its growth.
BlackBuck’s Stakeholders
BlackBuck has raised over $350 million to date. Accel is the largest external stakeholder with an 18.58 percent share, followed by Quickroutes International and Sands Capital Growth. Co-founders Rajesh Yabaji, Chanakya Hridya, and Ramasubramaniam Balasubramaniam hold a combined 26.82 percent stake in the company.
As BlackBuck prepares for its IPO, it joins other tech companies like Swiggy and PayU, which are also planning to go public this year. The company’s planned IPO in the second half of FY25 will mark a significant milestone in its growth journey.
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