BlackBuck to Launch IPO on Dalal Street this November 13
INTRODUCTION
Flipkart-backed logistics platform BlackBuck to Launch IPO on Dalal Street this November 13.
The company, known for its digital trucking services, aims to raise ₹1,114.72 crore through a mix of fresh equity shares and an Offer for Sale (OFS) from existing investors. BlackBuck has set its IPO price range between ₹259 and ₹273 per share. This marks a big move in the booming tech IPO scene in India, with BlackBuck seeking to tap into the country’s expanding logistics market.
In the financial quarter ending June 2024, BlackBuck reported a net profit of ₹28.67 crore. This figure is a turnaround from losses in the same period last year, showing a 55% jump in revenue.
As India’s largest trucking platform, BlackBuck holds about 27% of the inter-city trucking market, serving independent truck operators through services like payment processing, load booking, and financing. The IPO is expected to boost its growth by providing funds for several new initiatives.
Investment Highlights of the BlackBuck IPO
BlackBuck’s IPO offers investors access to India’s fast-growing logistics sector. The startup plans to raise ₹550 crore from new shares and release 2.06 crore shares through an OFS by existing shareholders, including Accel India, Peak XV, and Flipkart’s Quickroutes International.
However, the startup’s current valuation of ₹4,818 crore is 36% lower than its previous private valuation of ₹7,500 crore in 2021. This lower entry point could be appealing for investors looking at future growth potential.
The funds raised will be allocated towards specific growth areas. Around ₹140 crore is set aside for BlackBuck’s finance subsidiary, BlackBuck Finserv, which provides loans to truck operators. Another ₹200 crore will go toward marketing to strengthen the brand’s reach and attract new customers in a competitive market.
BlackBuck’s Journey and Financial Strategy
Founded in 2015 by Rajesh Yabaji, Chanakya Hridaya, and Ramasubramanian Balasubramaniam, BlackBuck connects truck operators to digital services. Its platform supports operators by streamlining payments, load management, and financing options. It helps truckers find loads through its marketplace.
Earlier this year, BlackBuck sold its corporate freight segment to focus more on services for independent truck operators. This shift aims to cater better to the country’s vast trucking community, a segment still largely untapped by digital services.
BlackBuck’s recent financials reflect a stronger focus on cost control and revenue growth. For FY24, the company reported a 68% rise in revenue, reaching ₹297 crore, while also cutting its net losses to ₹167 crore, down from ₹237 crore in FY23.
This shift shows BlackBuck’s commitment to building a sustainable business model as it enters the public market.
BlackBuck to Launch IPO on Dalal Street
BlackBuck’s IPO signals a major moment for India’s tech-driven logistics industry. The company’s focus on digital solutions, especially for smaller, independent truck operators, aligns with a growing demand for digital transformation in traditional sectors.
With the IPO proceeds, BlackBuck plans to expand its financial services arm, boost marketing, and enhance its product offerings.
The question is will BlackBuck’s IPO bring long-term gains for investors? The answer likely depends on the company’s ability to retain its market share and grow in a highly competitive sector. The upcoming listing will be one to watch for those tracking India’s expanding tech IPO landscape.
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