BlackBuck claims to be India’s largest trucking platform with over 15,000 clients including bigwigs such as Amul, Coca-Cola, Reliance Industries and Tata Steel. Unlike many growth-stage startups, the company’s claims have been supported by its financial performance in FY19.
BlackBuck managed to double its operating revenues to Rs 1,790.7 crore in FY19 from Rs 888.7 crore in FY18. In comparison, BlackBuck’s direct competitor Rivigo witnessed only a 45% growth in revenue during the same period and recorded operating revenues of Rs 1,005.3 crore in FY19.
Blackbuck also generated Rs 12.06 crore in financial income during the fiscal ended in March 2019.
The five-year-old startup raised significant capital during the last fiscal to fuel its growth and achieve these numbers. Blackbuck raised Rs 839 crore through issuing shares and borrowed another Rs 279 crore during FY19 to expand its operations in the country. As a result, the company’s total assets grew 2.7X to reach Rs 1,328.3 crore at the end of FY19.
Notably, the efficient application of these assets can be measured by the asset turnover ratio of the company which stood at 2.1., Rivigo, on the other hand, held assets worth Rs 1,173.8 crore at the end of March 2019 and the latter’s asset turnover ratio lagged behind .86 during the same period.
Akin to any growth stage startups both these trucking companies registered losses in FY19. BlackBuck’s losses grew 3x from Rs 116.7 crore in FY18 to Rs 345 crore in FY19 while Rivigo posted losses of Rs 602.2 crore during the same period.
Similar to the rate at which the revenue grew, BlackBuck’s total expenditure also grew 2.1X from Rs 1,018.6 crore in FY18 to Rs 2,147 crore in FY19. But even with its expenses doubled, the amount spent to earn a single rupee of operating revenue increased by a paltry 4.3% from Rs 1.15 in FY18 to Rs 1.2 in FY19.
BlackBuck spent Rs 1,840 crore on total transportation costs in FY19, which rose 2.1X from Rs 880.3 crore as the order volumes grew at a similar rate. This is the biggest cost element for the company outweighing the revenues by Rs 49.3 crore.
Expenses on employee benefits amounted for Rs 86.2 crore in FY19, growing by 45.1% from Rs 59.4 crore as the company increased its workforce to harness growth. The company also incurred manpower expenses of Rs 20.6 crore during the fiscal ended in FY19.
Finance costs rose 2.5X to Rs 45.2 crore in FY19 from Rs 17.73 crore in FY18 on account of increased borrowings and the company lost another Rs 38.76 crore in bad debts during the same period.
The company operates over 4,00,000 trucks and services around 2,000 locations across the country through its online platform for both truckers and organisations looking for logistics services.
If we compare and analyse the financial performances of both companies, BlackBuck is clearly ahead of Rivigo on several fronts. In terms of revenue, the Bengaluru-based firm had a lead of about Rs 800 crore. Its unit expenditure at Rs 1.2 was also efficient than Rivigo which spent Rs 1.58 to earn a single rupee during FY19.
The gap of scale between the two companies is also significant. BlackBuck seems to be way ahead than its competitor. This gap may widen as the Rajesh Yabaji-led firm has been testing in the European market.
According to Entrackr sources, it’s conducting pilots in a couple of locations in the continent. The online B2B logistics company had raised Rs 56 crore in a mixed round of equity and debt fund from Trifecta Venture in November last year.
If it gains decent traction from overseas operations, BlackBuck will emerge as a unanimous leader in the surface logistics space from India.