IPO-Bound BlackBuck’s Attrition Rate Stood At Over 40% In FY24

IPO-bound logistics unicorn BlackBuck continues to be plagued by high attrition. The Flipkart-backed startup recorded an attrition rate of 41.08% in the financial year 2023-24 (FY24).

This, however, was a decline from 44.01% attrition rate in FY23, as per BlackBuck’s draft red herring prospectus (DRHP).

As of March 31, 2024, the startup had a total of 1,783 permanent employees. Besides, it engaged 3,638 contract workers, as per the DRHP. 

The startup also highlighted the high attrition rate as one of the risk factors.

“Our continued success is dependent on our employees, key management personnel and senior management personnel. We have faced high attrition among our employees in the past and our inability to attract and retain employees, key management personnel or the loss of services of our senior management personnel in the future may have an adverse effect on our business, results of operations and financial condition,” it said.

The competition for qualified personnel with relevant industry expertise in India is intense. The company faces significant competition in hiring and retaining appropriately qualified individuals, and there is no assurance of success in these efforts, BlackBuck said. 

This challenge may impact the company’s ability to expand its business, potentially leading to a decline in revenues, the DRHP added. 

Additionally, recruiting new employees who require training tailored to the company’s business operations, as well as providing training to existing employees on internal policies, procedures, and systems, can be costly in terms of time, money, and resources. 

“Our inability to attract and retain talented professionals, or the resignation or loss of such professionals, may have an adverse impact on our business, results of operations and financial condition,” it disclosed.

Founded in 2015 by Rajesh Yabaji, Chanakya Hridaya and Rama Subramaniam operates a digital platform for truck operators. It provides payments and telematics services to truck operators. Besides, it operates a loads marketplace, which matches truck operators with shippers, and facilitates vehicle financing.

The startup filed its DRHP last week with SEBI. Its public issue will comprise a fresh issuance 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 narrowed its net loss by 33% to INR 193.9 Cr in the year ended March 2024 from INR 290 Cr in the previous year. Revenue from operations soared 69% to INR 296.9 Cr in FY24 from INR 175.6 Cr in the previous year.