BlackBuck raises $150 million; Goldman Sachs, Accel lead round

By: |
Updated: May 2, 2019 2:42:54 AM

As part of this round, employees at BlackBuck can liquidate 25% of their total vested stocks, at the current stock price.

 

BlackBuck claims fleet owners on its platform have been able to reduce idle time by 45%, leading to an increase in earnings between 20% and 30%.

Online marketplace for trucking BlackBuck has raised $150 million in a new funding round led by Goldman Sachs Investment Partners and Silicon Valley-based Accel Partners. This takes the total amount of funds raised by the company to over $230 million.

Other new investors include Wellington, Sequoia Capital, B Capital and LightStreet. The round also saw participation from existing investors Sands Capital and International Finance Corporation, the investment arm of the World Bank.

As part of this round, employees at BlackBuck can liquidate 25% of their total vested stocks, at the current stock price.

This is the second time BlackBuck is executing a stock liquidation event for employees. The first one was in 2017.

BlackBuck currently has over 300,000 trucks and 60,000 plus fleet owners on its platform. The company said it will deploy these funds to penetrate deeper into the market, by onboarding new trucking partners along with the existing as well as new transportation corridors. BlackBuck said it will invest heavily in product and data sciences capabilities, to enable more efficient freight matching processes.

“BlackBuck’s tech platform helps improve utilisation of trucks, increases yield and improves service levels to shippers. We feel the asset-light approach taken by BlackBuck is a capital-efficient way to scale rapidly and offer services/products to the road freight industry,” Kabir Narang, general partner and co-head of Asia at B Capital, said.

Founded in 2015, BlackBuck matches a trucker with a shipper real-time and also facilitates services around trucking, by providing fleet cards, tyres, IoT, insurance and working capital credit to truckers.

CEO and co-founder Rajesh Yabaji said the asset light approach continues to enable the company to dominate this market. BlackBuck holds 90% plus of online market share of trucking in the country, he said. “While technology has helped us ensure a great shipping experience for our customers, being asset light has helped us experiment often and scale faster,” he added.

BlackBuck claims fleet owners on its platform have been able to reduce idle time by 45%, leading to an increase in earnings between 20% and 30%.

Sameer Gandhi, partner at Accel, said: “Logistics is a huge business opportunity globally and India is a very interesting market in this context. BlackBuck, through its asset-light, marketplace model has already proven to be a game changer and has successfully solved legacy problems like fleet under-utilisation and price opaqueness.”

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition