BlackBuck - The Journey of the Country's Largest Trucking Platform
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Embarking on the journey of trucking, whether you're grappling with governance, digitization, or the intricate matchmaking of shippers and truckers, can present a myriad of challenges. The complexities of price discovery and the nuances surrounding insurance, financial services, and overall industry infrastructure can be daunting for newcomers. Enter BlackBuck, a visionary solution founded to serve as the compass in this dynamic landscape. As we explore the industry context, introduce BlackBuck, and set the tone for this article, we uncover how this innovative platform is revolutionizing the trucking sector with its comprehensive and streamlined approach.
BlackBuck, the tech startup, came into existence on April 20, 2015. In this article, let's explore the world of BlackBuck—its founders, business and revenue model, funding, growth, and more.
BlackBuck - Company Highlights
| Startup Name | BlackBuck |
|---|---|
| Headquarters | Bangalore, Karnataka, India |
| Sector | Transportation, Logistics, Supply Chain and Storage |
| Founder | Rajesh Yabaji, Chanakya Hridaya and Ramasubramaniam B |
| Founded | 2015 |
| Website | blackbuck.com |
BlackBuck - About
BlackBuck - About
BlackBuck - Industry
BlackBuck - Founders And Team
BlackBuck - Startup Story
BlackBuck - Mission and Vision
BlackBuck - Name, Tagline, and Logo
BlackBuck - Business Model
BlackBuck - Revenue Model
BlackBuck - Challenges Faced
BlackBuck - Funding And Investors
BlackBuck - Shareholding
BlackBuck - Growth
BlackBuck - Advertisements and Social Media Campaigns
BlackBuck - Competitors
BlackBuck - Future Plans
BlackBuck - About
BlackBuck is India's largest trucking system, which is redefining the logistics ecosystem of India. It provides shippers and truckers quick and easy availability, transparent pricing, efficiency, trustworthiness and thereby, bring in a seamless experience with Data Science at its core. Besides, the company uses technology to match a shipper with a trucker and facilitate price discovery. BlackBuck promises the essentials and believes in building future-ready products for their clients.
The company has simplified trucking since 2015. BlackBuck has boasted of having 15,000+ clients as of December 8, 2023.
BlackBuck - Simplifying trucking business with CEO Rajesh Yabaji
BlackBuck Company Products
BlackBuck aims to build 'must have' and 'future ready' products to meet the demand of the age. The company offers its products and services with data science at its core. BlackBuck focuses both on driving consumer changes and working with analytics and machine learning. The BlackBuck company products, which are instantly available, fairly priced, and offer a seamless experience help create infinite value and deliver measurable results for shippers and the operators of the fleet.
BlackBuck serves both the shippers and fleet operators with products and services designed for both.
BlackBuck Products and Services for Shippers:
BlackBuck Products and Services for Fleet Operators:
BlackBuck - Industry
The trucking and logistics industry in India is expanding rapidly; by 2023, it is expected to reach a value of 288.18 billion USD.
According to a report from Mordor Intelligence, projections show a spectacular rise, reaching 484.43 billion USD by 2029, representing a strong compound annual growth rate (CAGR) of 9.04% throughout the predicted period from 2023 to 2029. This notable upturn highlights the freight and logistics sector in India's dynamic and innovative nature, offering both stakeholders and industry players exciting prospects and challenges.
BlackBuck - Founders And Team
Rajesh Yabaji, Chanakya Hridaya and Ramasubramaniam B are the founders of the company BlackBuck.
Rajesh Yabaji
Rajesh Yabaji is the co-founder and CEO of the company. He pursued his education at the Indian Institute of Technology, Kharagpur, from where he got his dual degree. He worked as the Category Development Manager commonly known as the Business Manager in ITC Limited for around 5 years. He was also a 3 months intern from May 2009 to July 2009 at Schindler India Pvt. Ltd. after being a summer intern for two more companies: the University of Nebraska Lincoln, USA, and Rio Tinto Alcan.
Chanakya Hridaya
Chanakya Hridaya is the co-founder of BlackBuck. He also completed his Bachelor's as well as his Master's degrees from the Indian Institute of Technology, Kharagpur, in mechanical and manufacturing engineering, respectively. Hridaya served previously as the Assistant Manager of Supply Chain at ITC before co-founding BlackBuck. Before that, Chanakya has been an Intern at ITC and a Visiting Researcher at the University of Strathclyde.
Ramasubramaniam B
Ramasubramaniam B is also one of the founders of BlackBuck. He is the Product Manager at BlackBuck, who has earlier been the Director at Miebach Consulting. Ramasubramaniam pursued his education from IILM.
BlackBuck has an incredible team of smart engineers, business developers, energetic leaders, creative designers, and other aspirational individuals.
BlackBuck - Startup Story
Co-founder Rajesh Yabaji came up with the concept for BlackBuck while he was employed at ITC. His regular trips to roads and toll plazas to hire trucks for affordable load transportation paralleled the growing patterns of Indian cab aggregators such as Ola and Uber. In the end, this idea gave rise to BlackBuck, which transformed the freight sector by offering a cutting-edge and effective platform for trucking logistics.
Yabaji recounts in a Forbes interview that he decided to establish BlackBuck with an aim to solve "the problem of corporate big boys such as Coca-Cola, HUL, and PepsiCo."
After founding the company in April 2015 with Chanakya Hridaya and Ramasubramaniam B, BlackBuck raised its seed capital of $5 Million in April itself. Rajesh Yabaji earlier said in an interview that his company was "unicorn by heart and not yet by number", before it actually turned a unicorn in July 2021.
He moved forward towards his goal, stating earlier that "until then, they were unorganized." This was primarily due to the influx of trucks from rural areas. At that time, BlackBuck had 1.2 Million+ trucks and around 700,000+ truckers under its wing.
Blackbuck is almost like Ola and Uber for trucks. The founder says that he is investing in a few areas from the very beginning to get supply online, to comprehend the technology, and to transact online which is the biggest problem to solve for them as per news report of July, 2021. So, which is why they have created the "BlackBuck App (previously boss)" to simplify things.
Shubham Kumar
BlackBuck - Mission and Vision
"It is our mission to make trucking simple, intuitive and efficient through cutting-edge technology", said the Founder and CEO of BlackBuck once in an interview.
The vision of BlackBuck is "to reinvent the freight-booking logistics sector, with a focus on uplifting the truck driver in the process."
BlackBuck - Name, Tagline, and Logo
The company marks the beginning of a new path.
BlackBuck - Business Model
BlackBuck follows business-to-business (B2B) as well as business-to-consumer (B2C) models. The company charges its customers a fixed rate for their contract business. In their demand model, they charge both their customers and truck owners a commission totally depending on the freight value.
They say that their company has each and everything that takes to win a truck race smoothly. The founders got great help from their bachelor's degree and they realised that there could be a larger play of trucks in the industry for technology to come in.
BlackBuck - Revenue Model
BlackBuck generates over 93% of its revenues from contract trucking services, as per the news report from March, 2022. It also provides telematics services of live tracking of all the trucks to the clients, which monitors their shipment all through.
BlackBuck also has a tie-up with the petroleum products marketers and banks for which it acts as an agent. It takes care of the distribution and management of radio frequency identification (RFID) tags and collects a commission for the same. These ancillary services brings in the remaining portion of the operating revenue.
The company earns about 15-20% commission for providing business to the trucks it hires as per news report of March, 2019. It has got properly listed truck services listed on its platform, and its job is to match the truck intelligently along with the customers, totally which depends on the customer's requirements. Logistics is the soul of every invention.
Ashwini
BlackBuck - Challenges Faced
Since BlackBuck is a pure-play aggregator in the trucking industry, it might be challenging to match trucks with appropriate orders; up to 80% of orders come from its predominately SME customer. The various vehicle types and tonnage capacities make it difficult to maximize coordination between truckers and shippers in order to maximize efficiency.
“The problem faced by product and engineering is that trucking has multiplied variables to it. For example, there are different types of trucks that can carry different tonnage. There is also complexity on the home-base of the trucker which needs to be matched. Also, to minimise the dry run for truckers, we have to match the right type of goods which will not perish within the time taken for transportation,” said BlackBuck founder Chanakya Hridaya.
In addition to complexity, payment dynamics present a significant challenge in the transportation aggregation space. Bigger corporations cause a mismatch with the truckers' demand for upfront payments for their services because they settle debts only once every thirty to forty-five days.
BlackBuck - Funding And Investors
BlackBuck has raised a total of $364 Million in funding over the nine funding rounds that it has seen.
Below are the funding details for BlackBuck:
| Date | Transaction Name | Money Raised | Lead Investors |
|---|---|---|---|
| July 22, 2021 | Series E | $67 Million | IFC Asset Management Company, Tribe Capital, VEF |
| May 7, 2020 | Debt Financing | $4 Million | Trifecta Capital Advisors |
| November 26, 2019 | Series D | $7.8 million | Trifecta Capital |
| May 1, 2019 | Series D | $150 Million | Accel, Goldman Sachs |
| October 8, 2018 | Series D | $27 Million | Sequoia Capital India |
| October 18, 2017 | Debt Financing | $7.69 Million | InnoVen Capital |
| March 21, 2017 | Series C | $70 Million | Sands Capital Ventures |
| December 11, 2015 | Series B | $25 Million | Accel |
| June 22, 2015 | Series A | $5 Million | Accel |
BlackBuck - Shareholding
Here is the BlackBuck shareholding pattern, sourced from Tracxn.
| Shareholders Name | Percentage |
|---|---|
| Founder | 25.56% |
| Fund | 47.01% |
| Enterprise | 13.07% |
| Angel | 0.31% |
| ESOP | 14.06% |
BlackBuck - Growth
Known as India's largest trucking platform, BlackBuck takes pride in the service they provide. It has 12,00,000+ trucks in 2000+ locations as of 2023, on its platform. The fleet owners in this company were able to reduce idle time by 45% directing towards an increase in earnings between 20% and 30% as per news report of 2019. BlackBuck is currently a unicorn trucking service provider, which raised $67 Million to enter the coveted club of unicorn companies in India in July 2021. BlackBuck also boasts of having over 15 Million monthly transactions on its platform as per news report of June 2022.
Financials
| BlackBuck Financials | FY22 | FY23 |
|---|---|---|
| Revenue from Operations | Rs 833 cr | Rs 704 cr |
| Total Expenses | Rs 1,154 cr | Rs 1,014 cr |
| Profit/Loss | Loss of Rs 285 cr | Loss of Rs 290 cr |
Expenses
BlackBuck total expenses have dropped from Rs 1,154 crore in FY22 to Rs 1,014 crore in FY23.
EBITDA
| BlackBuck FY22-FY23 | FY22 | FY23 |
|---|---|---|
| Expense/Rupee of ops revenue | Rs 1.39 | Rs 1.44 |
| ROCE | -43% | -76% |
| EBITDA Margin | -28% | -36% |
BlackBuck - Advertisements and Social Media Campaigns
Tarakki ka Naya Tareeka
Starring alongside the well-known actor Pankaj Tripathi, Blackbuck debuted its first ad film. The commercial, which promotes Blackbuck's services and displays Tripathi's adaptable talent, signifies noteworthy cooperation. Blackbuck hopes to strengthen its brand recognition with this engaging campaign.
BlackBuck - Competitors
The top competitors of the company are:
- Xpressbees
- Rivigo
- Delhivery
- ElasticRun
- Blowhorn
Vidhi Punamiya
BlackBuck - Future Plans
The goal of the company is to deploy cash to onboard new trucking partners, expand to new transportation corridors, and invest heavily in product buying and data science capabilities, as per the news report of 2019. Company is also paying attention to digital growth solutions.
Rishabh Rathi
FAQs
What is BlackBuck app?
BlackBuck is India's largest trucking service provider, which is currently a unicorn. Founded in 2015 by Rajesh Yabaji, Chanakya Hridaya, and Ramasubramaniam B, BlackBuck aims to make trucking simple for every shipper and trucker.
What does BlackBuck company do?
BlackBuck uses technology to match a shipper with a trucker and facilitates price discovery. It also enables infrastructure around trucking including payments, insurance, financial services.
Who is the Blackbuck boss?
Founded by Rajesh Yabaji, Chanakya Hridaya, and Ramasubramaniam B, BlackBuck is led by Rajesh Yabaji.
How much is the Blackbuck expenses?
BlackBuck expenses were last measured at Rs 1,014 cr in FY23.
What is the business model of BlackBuck?
The company charges its customers a fixed rate for their contract business. In their demand model, they charge both their customers and truck owners a commission totally depending on the freight value. They say that their company has each and everything that takes to win a truck race smoothly.
What is the BlackBuck funding?
BlackBuck funding stands at $364 Million.
Who is the founder of BlackBuck?
Rajesh Yabaji, Chanakya Hridaya, and Ramasubramaniam B are the founders of BlackBuck.
What are the main BlackBuck company products?
BlackBuck provides products and services both for the shippers and the fleet operators.
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