International Finance Corporation plans to make an equity investment of up to $10 million (Rs 68 crore) in logistics startup BlackBuck for a minority stake, the World Bank’s private-sector arm said.
The investment will help BlackBuck, operated by Bangalore-based Zinka Logistics Solutions Pvt. Ltd, drive growth in contract and spot business and build ancillary services platforms, IFC said in a disclosure.
The company is also raising additional capital from existing and other new investors, IFC said, without elaborating.
The startup had, in late 2015, raised $25 million in Series B funding from Tiger Global, Russian billionaire-investor Yuri Milner’s Apoletto fund and existing investors Accel Partners and Flipkart. It had previously received $5 million in funding from Accel Partners and Flipkart.
BlackBuck was founded in April 2015 by IIT Kharagpur alumni Rajesh Yabaji, Chanakya Hridaya and Ramasubramaniam B.
The technology company focuses on B2B logistics solutions for long-haul trucking. Its technology platform brings together shippers and truckers through its online marketplace to book freight for inter-city transportation.
The company operates on an asset-light business model. It matches truckers with shippers through its online platform, and minimises downtime for trucks and maximises utility of the asset for the truck operator.
The company also provides support in using ancillary services such as toll cards and fuel cards to drivers with partners like non-banking finance companies and fuel retailers so that truck drivers do not need to carry a lot of cash.
It has about 80,000 trucks on its platform and had conducted 100,000 transactions year-to-date, IFC said.