Flipkart-Backed Truck Aggregator BlackBuck Excitingly Files for IPO, Targeting ₹550 Crore

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Flipkart-backed Truck Aggregator BlackBuck Files for IPO, Aims to Raise ₹550 Crore

By News 24 Media

First Published: July 8, 2024,

Overview

Flipkart backed BlackBuck, an online trucking platform backed by Flipkart, has recently filed its draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) for an initial public offering (IPO) to raise ₹550 crore. Let’s delve into the details:

Key Points of Flipkart-Backed Truck Aggregator BlackBuck

IPO Details:
- Offer for Sale (OFS): The IPO includes an OFS of 21.6 million shares by existing shareholders.
- Founders’ Stake: The co-founders—Rajesh Yabaji, Chanakya Hridaya, and Ramasubramanian B.—will sell 2.2 million, 1.1 million, and 1.1 million shares, respectively. Together, they hold a 32% stake in the firm.
- Investors’ Participation: Accel Partners, Quickroutes International, Tiger Global, and Peak XV Partners will also sell their shares in the IPO. Accel will divest 24.2% of the total OFS, Quickroutes International will offload 3,973,898 equity shares, and International Finance Corporation and Tiger Global will also participate in the sale.
- Shareholding Distribution: Accel currently holds the largest shareholding in BlackBuck with a 17.07% stake, followed by Quickroutes International (12.97%), Tiger Global (2.91%), Peak XV (2.11%), and Tribe Capital (2.80%).
Business Model:
- Flipkart backed BlackBuck operates as a digital platform for truck operators, providing services such as managing payments for tolling and fueling, monitoring drivers and fleets using telematics, finding loads on its marketplace, and facilitating financing for the purchase of used vehicles.
Financial Performance:
- In the fiscal year 2023-24:
  - Revenue from Operations: Flipkart backed BlackBuck’s revenue from operations grew by an impressive 68.8% to ₹297 crore.
  - Profitability: The company’s losses decreased by 33% to ₹194 crore.

Use of Proceeds

The IPO proceeds will primarily fund the capital needs of BlackBuck’s non-banking financial company, Blackbuck Finserv.

Conclusion

BlackBuck’s IPO presents an opportunity for investors to participate in a rapidly growing logistics unicorn. With its robust business model, strong revenue growth, and strategic backing from Flipkart, the IPO is likely to attract considerable interest from investors.

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