B2B Logistic startup BlackBuck has moved closer to the coveted unicorn club, after the latest funding round propelled its valuation to almost $950 Mn. Through this series D round, the Bengaluru based firm has raised $150 million (about Rs 1,040 crore) from several high profile investors like Accel, B Capital and Sequoia Capital. International Finance Corporation and Sands Capital are other two investors that participated in the round.
If BlackBuck does touch or surpasses $1 Bn valuation mark it will be the second logistic firm to achieve this milestone. Delhi based and SoftBank backed Delhivery become the first logistic company to cross $1 Bn valuation only a few months back.
The fresh funding round will most certainly help BlackBuck in consolidating its war chest to compete with its main rivals. Apart from Delhivery, the Bengaluru based firm faces tough competition from Rivigo Loadshare. Reports claim that the company plans to utilize latest capital infusion for bringing new trucking partners on board, reaching to newer transportation corridors and making heavy investment in R&D. Till date the company has reportedly raised $230 Mn through multiple rounds.
However, the unorganized nature of the B2B2 logistic sector possess a great hurdle for BlackBuck and other players. It is estimated that small and unorganized players make up for nearly 85% of the sector, which means organized players are still fringe and niche players.
BlackBuck’s journey in the B2B logistic industry started in the year 2015. The company was incorporated by IIT graduates Yabaji, Chanakya Hridaya and Ramasubramaniam. The trio aims to leverage the power of technology to redefine and revolutionize the logistic space, especially the long-haul trucking space. The company reported a surge of 60% to Rs 901.9 crore while its expenses rose Rs 1,018.61 crore in FY18.