Blackbuck files DRHP; Accel to divest 24.2% of OFS

Online trucking platform Blackbuck has filed its draft red herring prospectus (DRHP) with the Security Exchange Board of India (SEBI) for an initial public offering (IPO).

The firm has proposed to raise funds through a fresh issue of equity shares aggregating up to Rs 550 crore and an offer for sale (OFS) of up to 2,16,09,022 equity shares.

Accel will divest 24.2% of total OFS i.e 52,32,632 equity shares. Quickroutes International will offload 3,973,898 equity shares followed by International Finance Corporation and Tiger Global at 3,973,898 and 1,711,962 shares, respectively.

The fresh issue and OFS will be allotted at a face value of Re 1 while the price band and the minimum lot band will be decided by the company in consultation with the book-running lead managers shortly.

According to the DRHP, Accel controls the largest holding in the firm with a 17.07% stake followed by Quickroutes International with a 12.97% share.

Tiger Global, Peak XV, and Tribe Capital hold 2.91%, 2.11%, and 2.80% respectively. Blackbuck founders Chanakya Hridaya, Rajesh Kumar, and Ramasubramanian Balasubramaniam cumulatively command 32% of the holdings.

Axis Capital, IIFL Securities, Morgan Stanley, and JM Financial are the book-running lead managers of the issue.

Founded in 2015, Blackbuck provides payments, telematics, loads marketplace, and vehicle financing services that empower truck operators to operate their businesses efficiently. The company claims to have 9,63,345 annual transactions of truck operators.

Blackbuck has raised over $350 million to date including its $67 million Series E round led by Tribe Capital, IFC Emerging Asia Fund, and VEF when the Flipkart-backed firm entered into the coveted unicorn club.

According to the financial statements shown in DRHP, Blackbuck’s revenue from operations grew 68.8% to Rs 297 crore in FY24. However, the losses for the Bengaluru-based firm declined 33% to Rs 194 crore in FY24 from Rs 290 crore in FY23.

It appears that Blackbuck has changed its revenue recognition for the last two fiscal years. Earlier, it reported Rs 704 crore revenue in FY23 and Rs 833 crore in FY22.

Blackbuck is set to become the second startup from the logistics space to get listed on the stock exchange. In May 2022, SoftBank-backed Delhivery became the first one from the sector to make the market debut. E-comm Express, which has put a hold on its IPO plan, recently raised $172 million via right issue.