Accel and Flipkart-backed truck aggregator BlackBuck has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise Rs 550 crore through a fresh issue of shares. The public issue also includes an offer for sale (OFS) of 21.6 million shares by existing shareholders, including co-founders Rajesh Yabaji, Chanakya Hridaya, and Rama Subramaniam, as well as investors such as Accel, Tiger Global, and Peak XV Partners.
Accel, the largest shareholder with a 14% stake, plans to sell 4.3 million shares and 923,282 shares through its two units in the OFS. Other significant shareholders participating in the OFS include Singapore-based Quickroutes International, World Bank-backed International Finance Corporation, and US-based Sands Capital. Venture funds Tiger Global Management, Peak XV Partners, and B Capital will also sell part of their stakes.
The proceeds from the IPO will be allocated towards sales and marketing (Rs 200 crore) and an investment of Rs 140 crore into Blackbuck Finserve, the company’s non-bank financial company (NBFC) subsidiary. This investment aims to augment the capital base of Blackbuck Finserve to meet future capital requirements. Additionally, Rs 75 crore will be spent on product development.
As of March 31, BlackBuck had 963,345 truck operators, with 597,638 monthly transacting truck operators using its app in the 2023-24 financial year, compared to 458,025 in the previous year. The firm reported an operating revenue of Rs 296 crore for 2023-24, up from Rs 175 crore in the previous fiscal year. However, it also reported a loss of Rs 166 crore from continuing operations, an improvement from a loss of Rs 236 crore the previous year.
Axis Capital, Morgan Stanley, JM Financial, and IIFL Securities are the book-running lead managers for the issue.
