BlackBuck files IPO papers for raising Rs 550cr

Bengaluru-based BlackBuck, the country’s largest digital platform for truck operators, has filed papers for an initial public offering (IPO) of Rs 550 crore.

The offer, with a face value of Re 1 each, is a mix of fresh issuance and an offer for sale of up to 2.16 crore equity shares by promoters and other shareholders.

BlackBuck (Zinka Logistics Solutions) is promoted by Rajesh Kumar Naidu Yabaji, Chanakya Hridaya and Ramasubramanian Balasubramaniam. With 963,345 truck operators transacting on its platform in fiscal 2024, BlackBuck reported an operating revenue of Rs 297 crore, up 69 percent from Rs 176 crore in fiscal 2023. Loss from continuing operations declined to Rs 167 crore from Rs 237 crore last year.

Zinka had 259,011 monthly transacting users utilising at least two services, facilitating over 413.34 million transactions.

Zinka also offers vehicle financing solutions, enabling truck operators to purchase used commercial vehicles or obtain financing on existing ones. By March 31, 2024, the company had facilitated 4,035 loans amounting to Rs 196.79 crore. Revenue from the segment is derived from loan service fees and other charges related to loan disbursal and collections.

The loads marketplace within the BlackBuck app helps truck operators find loads to fill their empty capacities or secure better prices. In fiscal 2024, there were 2.12 million load postings, enabling 256,685 truck operators to obtain loads.

Zinka processed a gross transaction value (GTV) of Rs 17,396.19 crore in payments for fiscal 2024 with monthly active truck operators using it for over 16.18 days per month and spending an average of 39.56 minutes daily on the platform.

The proceeds from the fresh issue of shares to the extent of Rs 200 crore will be utilised for sales and marketing costs, Rs 140 crore for investment in Blackbuck Finserve and Rs 75 crore for funding of expenditure in relation to product development and general corporate purposes.