Accel and Flipkart-backed truck aggregator BlackBuck has filed the 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 includes an offer for sale (OFS) of 21.6 million shares by existing shareholders.
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The firm’s co-founders and promoters Rajesh Yabaji, Chanakya Hridaya and Rama Subramaniam will sell 2.2 million shares, 1.1 million shares and 1.1 million shares, respectively, in the OFS. Investors such as Accel, Tiger Global and Peak XV Partners will also part-sell stake in the proposed IPO.
Accel, the largest shareholder in the firm with a 14% stake, will sell 4.3 million shares and 923,282 shares through its two units in the OFS. Singapore-based Quickroutes International will sell 3.9 million shares, while World Bank-backed International Finance Corporation will sell 1.7 million shares and 628,315 shares through two entities. US-based Sands Capital will sell 1.3 million shares, 514,745 shares and 302,328 shares, respectively, through its three entities participating in the OFS.
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Meanwhile, venture funds Tiger Global Management, Peak XV Partners and B Capital will sell 883,322 shares, 640,409 shares and 529,993 shares in the OFS, respectively.
From the proceeds, the firm will spend Rs 200 crore on sales and marketing and invest Rs 140 crore in its non-bank financial company (NBFC) subsidiary, Blackbuck Finserve. “The net proceeds invested into the NBFC subsidiary will be utilised by BFPL for financing the augmentation of its capital base to meet its future capital requirements,” said the draft red herring prospectus.
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Blackbuck will also spend Rs 75 crore on product development. The firm said it had 963,345 truck operators as of March 31, and registered 597,638 monthly transacting truck operators on its Blackbuck App in 2023-24, compared to 458,025 such users in the previous financial year.
For 2023-24, the firm reported operating revenue of Rs 296 crore, against Rs 175 crore in the previous fiscal. It reported a loss of Rs 166 crore from continuing operations for the fiscal, against a loss of Rs 236 crore for the previous year.
Axis Capital, Morgan Stanley, JM Financial and IIFL Securities are the book running lead managers to the issue.
