About the Company:
Zinka Logistics Solutions Ltd is India’s largest digital platform for truck operators (in terms of number of users), with 963,345 truck operators in the country transacting on our platform in Fiscal 2024, which comprises 27.52% of India’s truck operators.
India’s growing economy needs the support of robust logistical capabilities and small and medium size truck operators are the backbone of logistics in the country. These truck operators are served through value chains which are unorganized and fragmented, making their operations inefficient.
Company is on a mission to digitally empower India’s truck operators, helping them manage their business and grow their income. Using our platform, our customers (primarily comprising truck operators) digitally manage payments for tolling and fueling, monitor drivers and fleets using telematics, find loads on our marketplace and get access to financing for the purchase of used vehicles.
The BlackBuck App serves as a platform providing payments, telematics, loads marketplace and vehicle financing services. These solutions digitally empower truck operators and help them realize their objectives effectively and efficiently.
Graphic representation of certain key metrics related to our business:
Truck operators use the BlackBuck mobile application (the “BlackBuck App”) for their diverse business needs. Set out below are certain key highlights in relation to our business:
Company’s gross transaction value (“GTV”) in payments was Rs.5356.2 crores and Rs.173,96.1 crores in the three months ended June 30, 2024 and Fiscal 2024, respectively. Company’s customers recharge for tolling and fueling through our BlackBuck App into the payment instrument of the FASTag and fuel partners.
• Truck operators manage their truck-level tolling and fueling operations through the BlackBuck App, and gain cost benefits and effective control over expenses through decreased risk of pilferage and unauthorized spending.
• Truck operators purchase telematics services such as vehicle tracking and fuel sensors to manage their drivers and fleets. Company had 390,088 and 356,050 average monthly active telematics devices in the three months ended June 30, 2024 and Fiscal 2024, respectively.
• Truck operators use our loads marketplace product to search for loads to fill their empty capacities or to get a better price for a load. Company had 0.71 million and 2.12 million load postings in the three months ended June 30, 2024 and Fiscal 2024, respectively, which enabled 133,369 and 256,685 truck operators to get a load during the same periods.
• Truck operators avail used commercial vehicle financing through our platform. As on June 30, 2024, Company had facilitated disbursements of 5,109 loans amounting to Rs.252.7 crores.
Breakdown of Revenue from continuing operations for the periods/years indicated:
Problems faced by Truckers:
High dependence on intermediaries to find shipments leads to significant hurdles in discovery and matching of loads between shippers and truck operators. As a result, trucks in India spend on average 24-48 hours to find the next shipment, leading to significantly high levels of under-utilization. Trucks in India only run for 18-20 days a month on the road while the rest of the time is spent idling.
Matching of shippers and truckers traditionally takes place offline in remote transportation hubs. Shippers and truck operators have diverse, complex and often non-standard needs. Load details are written on paper and matched with truck operators over the phone or in person. The matching process for a truck operator’s truck with a load is complex due to the following reasons:
• Lack of aggregate information about loads/trucks in a particular transportation hub.
• Multiple variables in matching a load with a suitable truck (timing of load versus truck availability, truck type (open
body/container), tonnage, volume, truck floor (wooden/metal), length and width of truck and/or commodity type).
• A mismatch of pricing and payment terms between shippers and truck operators.
• Lane/route preferences of truck operators and drivers due to geographic familiarity, language constraints and return
load availability/freight pricing.
• Lack of trust in working with an unknown shipper/truck operator
On average, brokers impose a 3-8% commission for their services, thereby inflating costs and undermining the efficiency of these transactions. A digital platform where truckers and shippers can directly interact would facilitate seamless communication, enabling real-time matching of supply with demand, thereby reducing truck underutilization, and minimizing lead times to secure loads. Through direct engagement, truck operators can bypass traditional brokers
Set out below are certain details of transactions in relation to our loads marketplace.
Management Team:
- Mr. Rajesh Kumar Naidu Yabaji (Designation: Chairman, Managing Director and Chief Executive Officer)
- Mr. Chanakya Hridaya (Designation: Executive Director and Chief Operating Officer)
Objectives of the Issue:
Offer For Sale: (Rs. 565 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fresh Issue: (Rs. 550 cr)
- Funding towards sales and marketing costs.
- Investment in Blackbuck Finserve Private Limited, our NBFC subsidiary, for financing the augmentation of its capital base to meet its future capital requirements.
- Funding of expenditure in relation to product development.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Funding towards sales and marketing costs | 200 cr |
| Investment in Blackbuck Finserve Private Limited for financing the augmentation of its capital base to meet its future capital requirements | 140 cr |
| Funding of expenditure in relation to product development | 75cr |
Positives for the Company:
India’s largest digital platform for truck operators.
- Company is India’s largest digital platform for truck operators (in terms of number of users) as of March 31, 2024 , and has facilitated over 413.34 million transactions for 963,345 annual transacting truck operators in Fiscal 2024.
- Company served 27.52% truck operators in India and facilitated 32.92% of the commercial vehicles tolling payments in Fiscal 2024. Company’s services are available across 628 districts, constituting 80% of India’s districts as of June 30, 2024
- Company’s business model is centered around truck operators and aims to solve their challenges by providing them a digital platform to manage tolling and fueling payments, track their fleet
real-time, find loads and financing for used vehicles to grow their business. - Company’s ability to offer accessible solutions for Indian truck operators such as the availability of the Blackbuck App in four vernacular languages (Hindi, Kannada, Tamil and Telugu) in addition to English and physical presence and customer support at all hours for our customers is a key factor for our position as India’s largest digital platform of truck operators (in terms of number of users) as of March 31, 2024.
Strong network effects of platform resulting in robust customer retention rates and higher monetization.
- Company has a wide network of truck operators built over nine years of operations. Company has been able to build a nationwide truck operator base through targeted digital and telemarketing campaigns and effective nationwide on-ground teams. Through this, company has been able to grow our customer base of annual transacting truck operators to 963,345 in Fiscal 2024 from 482,446 in Fiscal 2022.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 | Upto 30th June 24 |
|---|---|---|---|---|
| Revenue | 156.1 | 195.0 | 316.5 | 98.3 |
| Net Profit | (-284.5) | (-290.4) | (-193.9) | 32.4 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Zinka Logistics Solutions Ltd | 1 | (-10.52) | N.A | (-53.64) | 16.89 |
| C.E. Info Systems Ltd | 2 | 24.78 | 24.58 | 0.20 | 12.09 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 13th November 2024 |
| Issue Closes on | 18th November 2024 |
| Issue Price | Rs.259-273 |
| Face Value | Rs.1 |
| Retail Category Allocation | 10 % |
| Minimum Lot | 54 Shares |
| Minimum Investment | Rs.14,742 |
| Issue Constitutes | 23.13 % |
| Issue Size | Rs.1114.7 cr ($132 million ) |
| Market Cap | Rs.4817 cr ($573 million ) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 2,01,46,520 (Rs.550 cr) |
| Equity Shares Offered (OFS) | 2,06,85,800 (RS.565 cr) |
| Total Equity Shares Offered (Fresh + OFS) | 4,08,32,320 (Rs.4817 cr) |
| Equity Shares Prior to the Issue | 15,63,30,160 |
| Equity Shares after the Issue | 17,64,76,680 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| (-10.52) | N.A | (-53.64%) | 16.89 |
Also Read: Complete List of NSE/BSE Holidays List>>
Important Dates:
| Finalization of Basis of Allotment | on or Before 19th November 2024 |
| Initiation of Refunds | on or Before 20th November 2024 |
| Credit of Equity Shares: | on or Before 20th November 2024 |
| Listing Date: | on or Before 21st November 2024 |
| Company Contact Info: |
|---|
| Zinka Logistics Solutions Ltd Vaswani Presidio, no. 84/2, II Floor, Panathur Main Road, Kadubeesanahalli, Off Outer Ring Road, Bengaluru 560 103, Karnataka, India. Tel: +91 8046481828 Email: cs@blackbuck.com Website: www.blackbuck.com |
| Registrar to the Issue: |
|---|
| KFin Technologies Limited Selenium, Tower B, Plot No. 31 and 32 Financial District Nanakramguda, Serilingampally Hyderabad 500 032 Telangana, India Tel: +91 40 6716 2222 E-mail: zinka.ipo@kfintech.com Website: www.kfintech.com |
| Check IPO Allotment Status: |
|---|
KfinTech Website (Click on the below Link)http://kfintech/IPO/Allotment_Status |
