BlackBuck, the Bengaluru-based logistics startup has raised INR 202 crores in a funding round from Sequoia Capital. Other existing investors including Accel Partners and Sands Capital also participated in the round, according to the regulatory filings by the startup. Sequoia Capital’s SCI Investment Fund has invested around INR 100 crores, while the rest of the capital was put together by other investors.
Neither Sequoia nor BlackBuck has confirmed the funding and details of the funding round are not available yet. Sequoia Capital closed its sixth India focused fund of $695 million in August this year, and the funding comes soon after that.
Founded by three IITians in 2015, BlackBuck provides an online marketplace for freight shipment customers and fleet operators to connect and ship leveraging seamless logistics solutions. The founders of the startup are Rajesh Yabaji, Chanakya Hridaya and Ramasubramaniam B, all of them graduated from IIT Kharagpur.
The startup has already achieved operational profits last financial year and is growing at a good rate. BlackBuck claims to have sevenfold increments in its revenues touching INR 566 crores financial year 2017. However, losses too grew fivefold crossing INR 86 crores during the same financial year.
“Macroeconomic factors like GST and their downstream effect into the logistics industry would affect the ecosystem in FY18 and company expects to be in a strong position to take advantage of the same,” Zinka Logistics, as the company is registered, had said in its MCA filing for FY17.
Earlier last month logistics startup GoBOLT has raised INR 40 crores in Series A round of funding from Aavishkaar. Other startups in the industry includesRivigo, FarEye, LEAP India, Shadowfax, CourierHome, among several others. This month has witnessed ElasticRun raising INR 40 crores in Series A funding from Norwest Ventures.
The logistics industry in India is witnessing an active involvement of technology and several tech startups are flocking in to leverage the huge potential. As per the Economic Survey 2017-18, the Indian logistics sector provides livelihood to 22 million-plus people and improving the sector would facilitate a 10% decrease in indirect logistics cost, leading to a growth of 5-8% in exports. Indian logistics sector stands at $160 billion which is expected to grow at a CAGR of 10.5% and touch $215 billion by 2020.