Online freight aggregator Blackbuck which is owned by Zinka Logistics Solutions Pvt. Ltd, has today received an investment commitment of US$30 million in its series C funding round.
Its investors consist a mixture of new and existing investors, including Sands Capital and World Bank’s investment arm International Finance Corporation (IFC) which have committed about US$10 million each for a minority stake.
Other investors including existing investors Accel Partners and Flipkart Ltd, along with angel investor Sanjiv Rangrass, an ITC executive has also contributed in this round.
Besides, according to the report by Livemint, Blackbuck is also in talks with new investors to raise another US$30 million to up its game in the logistic space, especially in the backdrop of its main competitor Rivigo raising US$75 million from Warburg Pincus.
“Blackbuck and Rivigo are the only scaled-up start-ups in this sector. Besides, Blackbuck is asset-light since they don’t own trucks, which makes it an attractive investment option. Sands Capital and International Finance Corporations have been active in the Indian start-up space of late and understand the landscape quite well,” said a person familiar with the matter.
Founded in April 2015 by IIT Kharagpur alumni Rajesh Yabaji, Chanakya Hirdaya and transport industry veteran Ramasubramaniam B, the startup focuses on B2B logistics solution for long-haul trucking.
Specifically, the firm follows an asset-light business model as it acts as a marketplace connecting shippers and truckers through its online marketplace to book freight for inter-city transport of goods.
With partnerships to non-banking financial companies and fuel retailers, Blackbuck also provides support in using ancillary services such as toll and fuel cards to truck drivers so that drivers do not need to carry a lot of cash.
A company housing about 1000 employees, Blackbuck covers 300 locations across India and has about 100,000 truck owners and freight operators listed on its platform. Its customers include ITC Ltd, Asian Paints Ltd, Britannia Industries Ltd and Marico Ltd., among some.
Prior to this, the startup had earlier raised a US$25 million series B round from Tiger Global, Accel Partners, Apoletto and Flipkart in September.
According to a May 2015 report by Nobonous, road freight comprises about 63 percent of all freight movement in the country. Freight transport market is also expected to grow at a compounded annual growth rate, or CAGR, of 13.35% by 2020, while road freight movement is expected to grow at a CAGR of 15%.
By Vivian Foo, VCNewsNetwork
This news is published on Reuters.