Trucking marketplace BlackBuck has received final observation from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO), according to a press note.
Accel- and Flipkart-backed BlackBuck had filed the draft red herring prospectus with the markets regulator in July. It looks to raise Rs 550 crore through a fresh issue of shares, with an offer for sale of 21.6 million shares by existing shareholders.
Zinka Logistics Solutions Limited, the company behind BlackBuck, plans to use Rs 200 crore towards sales and marketing and about Rs 140 crore as an investment in its non-banking financial company, Blackbuck Finserve, for strengthening its capital base to meet its future financial requirements. It also plans to infuse Rs 75 crore for product development.
BlackBuck founders Rajesh Yabaji, Chanakya Hridaya, and Ramasubramanian Balasubramaniam will sell 2.2 million, 1.1 million, and 1.1 million shares, respectively. Accel, which invested in the startup through its Accel India IV (Mauritius) fund, will sell up to 4.3 million shares and another 923,282 shares through its Accel Growth Fund V LP fund.
The startup offers BlackBuck app for payments, telematics, load management, and vehicle financing, enabling truck operators to manage their businesses.
The company also offers vehicle financing solutions, enabling truck operators to purchase used commercial vehicles or obtain financing on existing ones. It earns from loan service fees and other charges related to loan disbursal and collections.
BlackBuck’s consolidated revenue from continuing operations increased by 69.01% to Rs 296.92 crore in FY24 compared with Rs Rs 175.6 crore it posted in the previous fiscal year, it said in the statement. The company narrowed its EBITDA loss to Rs 138.7 crore in FY24 from Rs 213 crore a year ago.
In FY24, Zinka Logistics facilitated over 413.34 million transactions from more than 250,000 users.
