Inter-city trucking and supply chain startup Black-Buck has raised $150 million in Series-D funding, led by Goldman Sachs Investment Partners and Accel US, with participation from B Capital and Sequoia Capital.
ET first reported about the financing round in its March 14 edition. The latest round takes the total amount of funds raised to over $230 million and values the Bengaluru-based Zinka Logistics Solutions, which runs BlackBuck, at around $950 million. As part of this round, BlackBuck, at around $950 million. As part of this round, BlackBuck employees can sell 25% of their total vested stocks, CEO Rajesh Yabaji told ET. The company’s employee stock pool stands at 4.7% and is valued at Rs 300 crore.
About 50% of this corpus is eligible for vesting, Yabaji said, which makes the total ESOP transaction close to Rs 37 crore in this round.
About 200 employees hold ESOPs at BlackBuck, but all of them may not be eligible for vesting. “The programme is under board approval,” Yabaji said. BlackBuck has over 3,00,000 trucks and 60,000 fleet owners on its platform.
“Fleet owners on our platform have been able to reduce idle time by 45%, leading to an increase in earnings between 20% and 30%,” Yabaji said.
The company plans to deploy cash to onboard new trucking partners, expand to newer transportation corridors, and invest heavily in product and data sciences capabilities.
“Currently, the market is fragmented and inefficient due to highly manual and opaque processes, leading to poor experiences for stakeholders across the value chain. We see enormous potential for innovation in the full truck load logistics market in India,” said Sami Ahmad, head of Asia for Goldman Sachs Investment Partners Venture Capital & Growth Equity.
BlackBuck competes with the Rivigo, backed by SAIF Partners and Warburg Pincus, and the SoftBank-funded Delhivery in its trucking market is made up of small fleet owners who have between 5 and 20 trucks.
BlackBuck’s revenue rose about 60% to ?901.9 crore, while its expenses increased to Rs 1,018.61 crore in FY18 compared to the year-ago period.
Rivigo’s revenue stood at Rs 720 crore on expenses of ?990 crore in the same period, regulatory filings show.
Blackbuck, founded in 2015 by IIT-Kharagpur graduates Yabaji, Chanakya Hridaya and Ramasubramaniam, uses technology to match a shipper with a trucker and facilitates price discovery. It also enables infrastructure around trucking including payments, insurance, financial services.
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