Logistics startup BlackBuck, supported by Flipkart, is gearing up for a potential IPO in the upcoming fiscal year, with aims to raise up to $300 million, according to sources familiar with the matter.
“They have recently engaged merchant bankers and legal advisors to guide them on their proposed IPO and have initiated preparations for their draft red herring prospectus. They intend to file the DRHP with the full financial figures for FY24. The company is eyeing the second half of FY25 to launch its IPO,” one source stated.
Established in 2015, BlackBuck, operated by Zinka Logistic Solutions Pvt Ltd, operates a B2B online trucking platform linking companies in need of shipping services with truckers and vice versa. Additionally, it offers services including GPS tracking devices, FASTags, and fuel cards.
The IPO is anticipated to comprise both a fresh issuance of shares to raise capital for business expansion and a secondary sale of shares by existing investors. The final size of the offering will hinge on the extent of the secondary share sale, which is yet to be determined. The company intends to utilize the IPO proceeds to bolster its services segment, which has been a focus area in recent years, alongside enhancing its core freight business.
BlackBuck attained unicorn status in 2021 after securing $67 million in its Series E funding round, valuing the company at $1.02 billion. Notable investors in the round included Tribe Capital, IFC Emerging Asia Fund, VEF, Wellington Management, Sands Capital, and International Finance Corporation.
Financially, BlackBuck witnessed a 15 percent decrease in consolidated revenue from operations to Rs 704.18 crore in FY23, while its loss marginally increased to Rs 290.47 crore compared to the previous fiscal year.
The upcoming IPO of BlackBuck reflects a potential resurgence of tech startups in the Indian market after a slowdown in funding since 2022 due to global central banks raising interest rates. Other tech companies such as Ola Electric, Go Digit General Insurance, FirstCry, Swiggy, and PayU are also reportedly preparing for IPOs this year.
