BlackBuck Infuses INR 40 Cr In Vehicle Financing Business

SUMMARY

BlackBuck said that it has invested the sum towards the subscription of 50 Lakh equity shares of BFPL with a face value of INR 10 each

BlackBuck said that the investment is part of its strategy to augment the NBFC's capital base

BFPL facilitated disbursements of 5,109 loans amounting to INR 252.76 Cr as of June 31, 2024

Logistics company BlackBuck has infused INR 40 Cr in its NBFC subsidiary Blackbuck Finserve Pvt Ltd (BFPL) through a rights issue.

In an exchange filing, the company said that it has invested the sum towards the subscription of 50 Lakh equity shares of BFPL with a face value of INR 10 and a premium of INR 70 each.

The NBFC is a wholly owned subsidiary of BlackBuck parent Zinka Logistics.

BlackBuck said that the investment is part of its strategy to augment the NBFC’s capital base.

It is pertinent to note that BlackBuck said in its red herring prospectus (RHP), filed in November last year, that it planned to invest INR 140 Cr in BFPL post its IPO. The said investment was to be carried out in the form of debt or equity in the future.

Operating In A Niche Market: With BFPL, the company gives its users vehicle financing options, particularly for the purchase of used commercial vehicles or to avail financing on existing vehicles.

The offering is available under the name ‘BlackBuck Loans’ on the company’s app. The company claims that the tech-led vehicle finance platform employs a digital and API-driven loan process to eliminate fraud possibilities.

BFPL was incorporated in 2019 and received its non-deposit-taking NBFC licence in August 2023. It commenced lending operations in October 2023.

It posted a net loss of INR 12.54 Cr in FY24 on a turnover of INR 1.23 Cr. The NBFC had facilitated disbursements of 5,109 loans amounting to INR 252.76 Cr as of June 31, 2024, the company said in its RHP.

In Q3 FY25, BlackBuck’s lending business raked in a revenue of INR 1.58 Cr. Overall, the company’s revenue from operations surged 41% year-on-year (YoY) to INR 113.98 Cr during the quarter, while its consolidated net loss zoomed 145% to INR 48.03 Cr from INR 19.57 Cr in the year-ago quarter on account of an exceptional loss.

Without the exceptional items, the company would have posted a profit of INR 29.86 Cr from its continuing operations.

Shares of BlackBuck ended yesterday’s trading session 1.36% higher at INR 415.95 apiece on the BSE.