BlackBuck Gets SEBI Nod For INR 550 Cr IPO

Logistics startup BlackBuck’s parent entity Zinka Logistics Solutions has received approval from the Securities and Exchange Board of India (SEBI) for its more than INR 550 Cr IPO. 

As per SEBI’s document, BlackBuck was issued the final observation letter by the markets regulator on October 3.

Backed by marquee investors like Peak XV, Accel, Tiger Global and others, the logistics unicorn, which is an online marketplace for truckers and freight operators, filed its draft red herring prospectus (DRHP) in July.

Its issue comprises fresh equity of shares worth INR 550 Cr and an offer for sale (OFS) component of up to 2.16 Cr shares.

BlackBuck’s three cofounders Rajesh Yabaji, Chanakya Hridaya and Rama Subramaniam are set to offload 44.37 Lakh shares in total under the OFS portion. While Yabaji will offload 22.18 Lakh shares, the other two cofounders will sell 11.09 Lakh shares each, as per the startup’s DRHP.

The company is looking to utilise INR 200 Cr of the net proceeds from its fresh issuance towards sales and marketing costs and INR 140 Cr for investment in its NBFC subsidiary,  Blackbuck Finserve Private Limited. Some of the net proceeds will also be used towards product development and general corporate purposes.

Axis Capital, Morgan Stanley, JM Financial, and IIFL Securities are the lead book-running lead managers in this IPO.

Founded in 2015 by IIT Kharagpur alumni Yabaji, Hridaya, and Subramaniam, BlackBuck is a B2B marketplace specialising in inter-city full truckload (FTL) transportation. In simple terms, it connects truck operators with small and big businesses with shipping requirements in real-time via its tech-enabled platform and operates pan-India. 

The startup’s app serves as a comprehensive platform, providing solutions for payments, telematics, load management, and vehicle financing. Besides, BlackBuck also offers vehicle financing solutions, enabling truck operators to purchase used commercial vehicles or get financing on existing ones. 

While BlackBuck continues to be a loss-making entity, its net loss narrowed by over 30% to INR 194 Cr in FY24 from INR 290.4 Cr in the previous fiscal year. Meanwhile, its operating revenue also jumped 69% to INR 296.9 Cr during the last fiscal from INR 175.6 Cr in FY23.

BlackBuck’s decision to go public comes amid an IPO boom in the Indian market. Riding this boom, 10 Indian startups, including the major names like ixigo, Ola Electric, FirstCry, and Go Digit, have already gone public this year.

Currently, the much-awaited public listing of Swiggy is also in the pipeline this year, along with Ather Energy, MobiKwik, and BlackBuck, among a few others.