BlackBuck Subsidiary Gears Up for Digital Payments with RBI's PPI Nod

The Reserve Bank of India (RBI) has granted a prepaid payment instruments (PPI) licence to Zinka Logistics, a subsidiary of listed logistics giant BlackBuck.

The business stated in an exchange statement that its fully owned subsidiary, TZF Logistics Solutions Pvt Ltd, was awarded the licence by the central bank. Banks and non-banks cannot issue PPIs without a licence under the Payment and Settlement Systems Act of 2007.

To put it in perspective, PPIs enable remittance facilities, conduct financial activities, assist the purchase of goods and services, and more, all of which are facilitated by the value they store.

The Move will Assist TZF Logistics to Run Payment System More Effectively

According to BlackBuck's petition, the licence will assist the company's fully owned subsidiary TZF Logistics Solutions Pvt Ltd, in setting up and running a payment system for prepaid payment instruments.

The RHP that BlackBuck submitted in November of last year states that TZF Logistics is in the transportation industry, offering clients a platform to rent various vehicles such as trucks, lorries, containers, cars, fleet taxis, and more. After being established in 2018, TZF Logistics reported a loss of INR 17.5 Lakh in FY24.

Although BlackBuck didn't say exactly how it would use the PPI licence, it is probably going to give it to truckers so they can pay for fuel and FASTag.

 BlackBuck, which was founded in 2015 by Rajesh Yabaji, Chanakya Hridaya, and Ramasubramaniam B, began as an online truck aggregator before growing to include a wide variety of load management, telemetry, payment, and vehicle financing products.

BlackBuck’s Business Operations

BlackBuck links small and large companies with shipping needs with truck fleet operators. Transparency about fuel costs, charges, truck safety, and tracking is frequently lacking among truck operators.

BlackBuck provides fuel cards and FASTag payments, GPS tracking and truck theft protection systems, verified communication channels between the shipper and the trucker, and vehicle financing options to address these problems. Commissions, platform fees, and subscriptions are how the business makes money.

In FY24, it had a 27.52% market share in the domestic goods sector. With a net profit of INR 280.1 Cr in Q4 FY25, the company generated a profit after reporting a loss of INR 90.8 Cr in the same quarter the previous year.

A tax credit of INR 245 Cr was also included in the profit figure. In the meantime, operating revenue increased from INR 93.2 Cr in Q4 FY24 to INR 121.8 Cr, a 30.6% increase.