We are discussing Flipkart-Backed Logistic Startup BlackBuck Filed Draft Papers with SEBI to Raise Rs 550 Crore via IPO:
BlackBuck is a logistic unicorn turned startup that filed its draft red herring prospectus with the market regulator, the Securities and Exchange Board of India, for its IPO of Rs 550 crore. The company plans to use the fresh capital from the IPO to scale its operations and meet the capital requirements for BlacBuck Finserv, a Non-banking financial company under BlackBuck.
The company mentioned in a regulatory filing that the public issue would have fresh insurance of Rs 550 crore shares and an offer for-sale component worth Rs 2.16 crore shares. The committee has finalized that the three co-founders of BlackBuck will offload 44.37 lakh shares under OFS. The co-founder of this company, Rajesh Yabaji, will dump 22.18 lakh shares, while the other two co-founders will sell 11.09 lakh shares each. The listing of equity shares will enhance the brand image and transparency of the startup. At the same time, providing a public market for equity shares in India.
BlackBuck offers an online B2B trucking platform for intercity full truckload transportation. The company reported over 9.63 lakh trucker transactions on the platform in FY24. The platform accounts for more than 27 percent of the market share of all truck operators in India. This logistic startup has investors, including Flipkart, Accel, Peak XV, and Goldman Sachs. The startup has raised 360 million USD in funding, including $67 secured in a funding round led by IFC Emerging Asia Fund and tribe capital.
The unicorn provides vehicle financing to its truck operators in seven states across India. The startup intends to use a huge portion of its funds to meet general corporate requirements, marketing, and product development. The shares of this firm will also be listed in BSE and NSE. The development came just after the parent company of this logistic startup, Zinka Logistics Solution, got approval from the board and its shareholders to change into a public company. The company reduced its losses by 33% to Rs 193.9 crore in FY24. However, the operational revenue increased by 69% to Rs 296.9 crore in the same duration.
Conclusion
The logistic startup Blackbuck filed its draft papers with market regulator SEBI to raise Rs 550 crore through an Initial Public Offering (IPO). The company aims to use this fresh capital raised from the IPO to scale its operations and meet the capital requirements for its NBFC arm, BlacBuck Finserv. This listing of equity shares will help the company enhance its brand image and visibility while providing a public market for equity shares in India.
The public issue would have fresh insurance of Rs 550 crore shares with OFS of Rs 2.16 crore shares. The startup provides a B2B platform that covers more than 27 percent of the market share of all truck operators in India. The company intends to use some of its funds to meet general corporate requirements, marketing, and product development. This IPO round came after Zinka Logistics Solution got approval from the board and its shareholders to change into a public company.
