Logistics startup BlackBuck, backed by e-commerce giant Flipkart, is reportedly gearing up to go public in the next fiscal year, eyeing a fundraising target of $300 million. According to a report by Moneycontrol, sources familiar with the matter revealed that BlackBuck has initiated the process of appointing merchant bankers and legal advisors to guide its proposed initial public offering (IPO). The company is currently in the early stages of preparing its draft red herring prospectus (DRHP) and aims to file it with the full financial numbers for fiscal year 2024.
Founded in 2015 and operated by Zinka Logistic Solutions Pvt Ltd, BlackBuck has emerged as a leading B2B online trucking platform in India. The platform facilitates connections between companies seeking to transport goods and truckers, offering a range of services including GPS tracking devices, FASTags, and fuel cards. With its innovative approach to logistics and technology-driven solutions, BlackBuck has garnered significant attention in the industry.
The proposed BlackBuck IPO is expected to comprise a combination of fresh issue shares aimed at raising capital and a secondary sale of shares by existing investors. While discussions regarding the secondary share sale component are still underway, the IPO is anticipated to hit the market in the second half of fiscal year 2025. This move comes as BlackBuck seeks to capitalize on its strong market position and drive further expansion and growth initiatives.
BlackBuck achieved unicorn status in 2021 following a successful fundraising round that raised $67 million. The funding was led by prominent investors including US-based Tribe Capital, IFC Emerging Asia Fund, and VEF. This milestone underscored investor confidence in BlackBuck’s business model and growth potential, further solidifying its position as a key player in the logistics sector.
Despite facing challenges, BlackBuck has demonstrated resilience and adaptability in navigating the evolving landscape of the logistics industry. The company reported a 15% decline in consolidated revenue from operations in fiscal year 2023, amounting to ₹704.18 crore compared to ₹832.57 crore in the previous year. Additionally, BlackBuck’s loss marginally increased to ₹290.47 crore in FY23, up from ₹284.55 crore in the year-ago period, according to filings.
As BlackBuck prepares for its IPO debut, industry observers are closely monitoring its progress and evaluating the potential impact on the logistics market. With its innovative business model, strategic partnerships, and commitment to technological advancement, BlackBuck is poised to redefine the future of logistics in India and beyond. As the company embarks on its next chapter, investors and stakeholders eagerly anticipate its public market debut and the opportunities it may unlock for the broader ecosystem.