BlackBuck Narrows Loss By 33% To INR 194 Cr In FY24

SUMMARY

IPO-Bound BlackBuck incurred a net loss of INR 194 Cr in FY24, a decline of 33% from INR 290.4 Cr in the previous fiscal year

Including other income, total revenue jumped 62% to INR 316.5 Cr in FY24 from INR 195 Cr in the previous fiscal year

The logistics unicorn’s initial public offering (IPO) will comprise a fresh issue of shares worth INR 550 Cr

IPO-bound logistics startup BlackBuck managed to narrow its loss by over 30% in the financial year ended March 31, 2024 (FY24) on the back of a strong business growth. The Bengaluru-based startup incurred a net loss of INR 194 Cr in FY24, a decline of 33% from INR 290.4 Cr in the previous fiscal year.

The startup’s operating revenue zoomed 69% to INR 296.9 Cr during the year under review from INR 175.6 Cr in FY23. It primarily earns revenue by offering payments services, telematics, load marketplace, and vehicle financing services on its platform.

Including other income, total revenue jumped 62% to INR 316.5 Cr in FY24 from INR 195 Cr in the previous fiscal year.

Where Did BlackBuck Spend?

Total expenditure rose 12% year-on-year (YoY) to INR 483.4 Cr in FY24, much lower than the growth in the operating revenue. The startup’s expenditure stood at INR 431.7 Cr in FY23.

Employee Expenses: The startup’s employee benefit expenditure stood at INR 286.9 Cr in FY24, an increase of 31% from INR 219.5 Cr in the previous fiscal year. Employee benefit expenses comprise employee salaries, PF contribution, among others.

It must be noted that the startup had an employee attrition of 41.08% in FY24, with a total employee count of 1,783.

Manpower Services: The cost under this head dropped 12% to INR 97 Cr from INR 110 Cr in FY23.

BlackBuck filed its draft red herring prospectus (DRHP) with markets regulator Securities and Exchange Board of India (SEBI) last week.

The Flipkart-backed logistics unicorn’s initial public offering (IPO) will comprise a fresh issue of shares worth INR 550 Cr and an offer for sale (OFS) component of up to 2.16 Cr shares (2,16,09,022 to be precise).

BlackBuck’s cofounders – Rajesh Yabaji, Chanakya Hridaya and Rama Subramaniam – will together will offload 44.37 Lakh shares via the OFS. While Yabaji will dump 22.18 Lakh shares, the two other cofounders will sell 11.09 Lakh shares each.

Existing shareholders like Flipkart, Accel, and Tiger Global will also offload the shares via the OFS.

The startup plans to utilise the net proceeds from the IPO for general corporate purposes, fueling sales and marketing initiatives and for product development.

BlackBuck, which was founded in 2015, has raised a total funding of over $360 Mn till date. It competes against the likes of Shiprocket, WheelsEye, ElasticRun, and Rivigo.