Logistics Firm BlackBuck Infuses Rs 40 Cr In Its Subsidiary Arm BFPL

Logistics and trucking platform BlackBuck has invested Rs 40 Crore in its NBFC subsidiary Blackbuck Finserve Pvt Ltd (BFPL) through a rights issue. 

In a stock exchange filing, the company announced that it has invested in 50 lakh equity shares of BFPL at INR 10 per share, with an additional Rs 70 premium per share.

BFPL is a wholly owned subsidiary of Zinka Logistics, the parent company of BlackBuck.

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BlackBuck said that the investment aims to strengthen BFPL’s capital base.

In its red herring prospectus (RHP) filed in November last year, BlackBuck mentioned plans to invest Rs 140 Crore in BFPL after its IPO, either through debt or equity.

Focused on a Niche Market: Through BFPL, BlackBuck offers vehicle financing for purchasing used commercial vehicles or securing loans on existing ones.

This service, branded as ‘BlackBuck Loans,’ is available on the company’s app. BlackBuck claims its digital, API-driven loan process helps prevent fraud.

About BlackBuck 

Founded in 2015 by IIT Kharagpur alumni Rajesh Yabaji and Chanakya Hridaya, along with Rama Subramaniam, BlackBuck is a B2B marketplace for inter-city truck transportation, connecting businesses with truck operators in real time.

In FY24, it reported a net loss of INR 12.54 Cr on a turnover of INR 1.23 Cr. As of June 31, 2024, its NBFC arm had disbursed 5,109 loans worth INR 252.76 Cr, according to its RHP.

In Q3 FY25, BlackBuck’s lending business generated Rs 1.58 Cr in revenue. Overall, its revenue from operations grew 41% year-on-year to Rs 113.98 Cr. 

However, due to an exceptional loss, its consolidated net loss surged 145% to Rs 48.03 Cr from Rs 19.57 Cr in the same quarter last year.

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