Flipkart-backed Logistics Company BlackBuck Files for Rs 550 Crore IPO

In a fresh investment round, BlackBuck, an Indian technology platform for logistics, intends to raise $75 million (Rs 550 Crore).

The truck aggregator BlackBuck, which has the support of Flipkart and Accel, has filed a draft red herring prospectus to the Securities and Exchange Board of India (Sebi) in a move to prepare for its IPO. The company wants to raise Rs 550 crore by issuing new shares.

The startup, supported by Goldman Sachs and Tiger Global, may be valued at $1 billion (Over Rs 8000 Crore) as a result of the investment. The latest round of fundraising comes after a $27 million (Rs 180 Core) round headed by Tiger Global in May.

The public offering includes a current shareholder offer for sale (OFS) of 21.6 million shares.

JM Financial, Axis Capital, Morgan Stanley, and IIFL Securities are the issue’s book running lead managers.

Related: Leading Logistics Company Blue Dart Names Dipanjan Banerjee As Its New Chief Commercial Officer

Accel, the company’s largest shareholder with a 14% interest, plans to sell 923,282 shares through its two OFS subsidiaries and 4.3 million shares directly.

Rajesh Yabaji, Chanakya Hridaya, and Rama Subramaniam, the co-founders and promoters of the company, will each sell 2.2 million, 1.1 million, and 1.1 million shares in the OFS.

The World Bank-backed International Finance Corporation will sell 1.7 million shares and 628,315 shares through two businesses, while Singapore-based Quickroutes International will sell 3.9 million shares.

US-based Sands Capital, through its three participating firms in the OFS, will sell 1.3 million shares, 514,745 shares, and 302,328 shares, respectively.

The venture capital companies Peak XV Partners, B Capital, and Tiger Global Management will be selling 883,322 shares, 640,409 shares, and 529,993 shares in the OFS, respectively, in the meantime.

BlackBuck plans to use the funds to expand its offerings and improve its technological capabilities. The company currently services over 10,000 clients with a network of over 700,000 trucks.

The company plans to invest Rs 140 crore in Blackbuck Finserve, a subsidiary of its non-bank financial company (NBFC), and spend another 200 crore on sales and marketing.

According to the draft red herring prospectus, “BFPL will use the net proceeds invested into the NBFC subsidiary to finance the augmentation of its capital base to meet its future capital requirements.”

Additionally, Blackbuck plans to invest Rs 75 crore in product development. As of March 31, the company reported having 963,345 truck operators on its Blackbuck App. In 2023–24, there were 597,638 monthly transacting truck operators on the app, up from 458,025 in the prior fiscal year.

The company reported operational revenue of Rs 296 crore for 2023–24, up from Rs 175 crore in the previous fiscal year. Compared to a loss of Rs 236 crore the year before, it reported a loss of Rs 166 crore from continuing operations for the fiscal year.

The IPO move is planned in a way to leapfrog the up and coming logistics startup towards new highs where BlackBuck can give a tough competition to market leaders like Delhivery, Bluedart and others.