With a population of about 1.4 billion, India has a high demand for logistics improvements as there are still tons of legacy systems being used. This means that there are plenty of opportunities for logistics startups.
BlackBuck, a Bengaluru, India-based online logistics company founded by CEO Rajesh Yabaji, Chanakya Hridaya, and Ramasubramanian B that makes logistics easier for shippers and truckers, announced recently that it has raised $150 million in Series D funding. This round of funding was led by Goldman Sachs Investment Partners and Accel Partners with a valuation of nearly $1 billion.
Wellington Management, Sequoia Capital, B Capital, LightStreet, and existing investors Sands Capital and International Finance Corporation also participated in this round. Including this round, BlackBuck has raised about $285.2 million. And with this round of funding, some of BlackBuck’s employees liquidated 25% of their total vested stock according to TechCrunch.
On BlackBuck’s network, there are more than 300,000 trucks and 10,000 clients registered on the platform. Some of the brands that work with BlackBuck include Coca-Cola and Unilever.
BlackBuck launched four years ago and the company designed an app that is simple to use. And the app helps drivers find shipping locations on Google Maps. With the app, they can opt-in for loads in order to get a match. And shipping organizations can find carriers that are available and place orders for deliveries.
“We see enormous potential for innovation in the full truckload logistics market in India,” said Sami Ahmad — which is the head of Asia for Goldman Sachs Investment Partners Venture Capital & Growth Equity team. “Currently, the market is fragmented and inefficient due to highly manual and opaque processes, leading to poor experiences for stakeholders across the value chain.”
BlackBuck currently employs more than 2,000 people and the company saw a loss of $17 million in 2018 on revenues of $135.5 million. BlackBuck generates revenue by charging about 15% to 20% of each job.