India’s trucking system includes a large inefficiency issue that proceeds to drag the market. BlackBuck, among the few logistics startups that are hoping to overhaul this system, only increased $150 million in Series D round to further pursue its own mission.
The new round was led by Goldman Sachs Investment Partners and Accel in valuation only shy of $1 billion, according to an individual familiar with the issue. Wellington, Sequoia Capital, B Capital, LightStreet, and Present investors Sands Capital and World Bank’s investment arm International Finance Corporation also participated in the round.
The four-year-old B2B startup, that connects companies with truck owners and cargo operators, has increased about $230 million in equity funding and another $100 million in debt funding up to now, CEO Rajesh Yabaji informed in a meeting.
Yabaji stated the startup will utilize the brand new capital to expand and increase its technology stack that enables truck drivers to find more work and expand its fleet of motorist spouses. As of now, BlackBuck has 300,000 trucks onto its own stage and approximately 10,000 customers including big names like soft drinks maker Coca Cola, consumer products giant Unilever, and automotive conglomerate Tata.
BlackBuck has developed a simplified program for truck drivers in India, that are typically not too literate, to assist them easily navigate to the destination with Google Maps and take work. On the customer side, companies can fire a similar program to set orders. Lately, it also tied up with insurer Acko to cover each of the trucks on its own network.
So as things operate in the present time, truck drivers in India frequently struggle to obtain any work in their way back by a fall. Yabaji states BlackBuck empowers them to locate 25% to 30 percent more work opportunities. The startup takes between 15% to 20% of the and this is the way it makes money.
India’s logistics marketplace, valued at $160 billion, has brought significant VC funds in the past several decades. Delhivery, a distribution chain startup, has increased north of $670 million in SoftBank, and Tiger Global amongst others. Rivigo, a startup which rotates drivers to boost efficacy, has increased north of $215 million in SAIF Partners and Warburg Pincus.
It is a capital-heavy small business. BlackBuck, that employs about 2,000 individuals, made $135.5 million in earnings at a reduction of $17 million in the financial year 2018, according to regulatory filings. Yabaji claims that the startup plans to aggressively grow its enterprise, so profitability isn’t something it’s expecting to go later in the long run.
“Given the market, we are in today, in terms of private capital being available, we do not have to do IPO for a really long time. It is all about optimizing for the objective,” he said.
BlackBuck said it’ll also give about 200 of its workers a choice to liquidate around 25 percent of the shareholding in the business in the present cost.