Flipkart-Backed BlackBuck Files DRHP For INR 550 Cr IPO

By Inc42 Media

SUMMARY

The public issue will comprise a fresh issuance of shares worth INR 550 Cr and an OFS component of up to 2.16 Cr shares

While Rajesh Yabaji will dump 22.18 Lakh shares, other cofounders Chanakya Hridaya and Rama Subramaniam will sell 11.09 Lakh shares each

BlackBuck plans to utilise the fresh proceeds from the IPO to meet the future capital requirements of its fintech arm BlackBuck Finserv and for general corporate purposes

Flipkart-backed logistics unicorn BlackBuck has filed its draft red herring prospectus (DRHP) with markets regulator Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). 

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

The OFS will also see:

  • Accel India cumulatively sell 52.32 Lakh shares 
  • Flipkart subsidiary Quickroutes International offloading 39.73 Lakh shares
  • Tiger Global offloading 8.83 Lakh shares 
  • International Finance Corporation selling 17.11 Lakh shares 
  • Sands Capital sell 13.24 Lakh shares 
  • GSAM Holdings offload 9.27 Lakh shares

As per the DRHP, BlackBuck plans to utilise the fresh proceeds from the IPO to meet the future capital requirements of its non-banking financial company (NBFC) arm BlackBuck Finserv.

Incorporated in 2019, the lending arm of the unicorn offers vehicle financing to truck operators in seven states across the country. 

 A big chunk of the funds will also be deployed for general corporate purposes, fueling sales and marketing initiatives and for product development.

The shares of the logistics unicorns will be listed on both the BSE as well as the NSE.

The logistics startup has filed its IPO papers just a month after its parent company, Zinka Logistics Solutions, received the board and shareholder nod to turn into a public company. At the time, it was reported that the Flipkart-backed platform was planning to go public later this financial year 2024-25 (FY25) and was eyeing to raise as much as $300 Mn.

Founded in 2015 by Yabaji, Hridaya and Subramaniam, BlackBuck operates an online B2B marketplace for inter-city full truck load (FTL) transportation. It claims to be the largest online trucking platform in India, accounting for 27% market share of all truck operators.

Backed by the likes of Peak XV and Goldman Sachs, the startup has raised more than $360 Mn in funding till date. It last secured $67 Mn in a round led by Tribe Capital, IFC Emerging Asia Fund and VEF to enter the unicorn club in 2021. 

As per the startup’s DRHP, the platform saw more than 9.63 Lakh truckers transact on the platform in FY24. 

The logistics platform trimmed its losses by 33% to INR 193.9 Cr in the year ended March 2024 compared to INR 290 Cr in the year-ago period. Meanwhile, revenue from operations soared 69% to INR 296.9 Cr in FY24 as against FY23’s INR 175.6 Cr. 

Source: Inc42 Media