BlackBuck, the truck logistics startup, has raised $67 million in the latest funding event at a valuation of $1.02 billion. The startup has brought a revolution in the untouched Indian trucking system by connecting truck owners with potential clients. It also helps the less educated drivers to reach the destination via its easy to use app.
BlackBuck Raises $67 Million
Six-year-old logistics startup BlackBuck has closed a funding round of $67 million led by Tribe Capital, IFC Emerging Asia Fund, and VEF. This is the Series E financial round completed by the startup. In 2019, it was valued at around $850 million after raising funds in the Series D round.
The year 2021 is the most productive in terms of funding to the Indian startup ecosystem. Within seven months, 16 startups have joined the unicorn status due to the overwhelming support from investors.
Arjun Sethi, co-founder and partner at Tribe Capital, talked about the Indian trucking ecosystem and the reason behind investment in BlackBuck. He believes that the Indian supply chain and logistics sector is moving at a fast pace from pen and pencil to the digital environment. BlackBuck has rightly assessed the challenges in the Indian trucking ecosystem. And, the startup has shown great productivity and positive growth in terms of solving the issues related to the Indian logistics system. The firm is capable of bringing much-needed transformation into the Indian trucking ecosystem.
BlackBuck connects business firms with truck owners and freight operators. The firm has also built an easy to use app that helps truck drivers in reaching their destinations using Google Maps. The online platform also helps the truck owners in accepting client’s requests. Business firms or other clients can also place orders via the same app to get the right trucks for their operations.
As per BlackBuck CEO Rajesh Yabaji’s claim, the startup’s online platform has attracted over 7 lakh truckers and 1.2 million trucks to date. The online platform performs 15 million transactions every month. Yabaji also said that there was no digitization in the Indian trucking system till 2019. The startup has recorded 20X supply activity on its platform since then.
BlackBuck also brought changes in its operations with time to make the logistics system more productive. Earlier, the startup used to operate via the call centre. Now, it has accepted the online app system to receive the orders. Another major change in BlackBuck’s operations is to remove the brokers. Now, the firm directly communicates with truck owners and drivers for the business.
BackBuck’s FASTag system is hugely accepted by truck owners. The startup has offered a simplified solution to implement the FASTag by truck owners. As per BlackBuck’s claim, 35% of trucking toll in India is collected via the BlackBuck system.