On July 8, listed logistics startup BlackBuck announced that the Income Tax (IT) Department has sent it a tax demand notice for INR 28.55 Lakh. The company stated in a statement with the exchanges that the July 7 tax notice was sent because certain expenses that qualified for tax deducted at source (TDS) had not been taxed.
The company claims that the tax demand, which included taxes, was made by the Bengaluru office of the Assistant Commissioner of Income Tax (TDS) and related to the fiscal year 2017–18 (FY18).
In explaining the nature of the infractions, BlackBuck said that an order under Sections 201(1) and 201(1A) of the Income-tax Act, 1961, was issued because some expenses did not have tax deducted at the source, confirming the total demand payment of INR 28,55,872/-, including applicable interest.
BlackBuck Plans to Appeal the Order
According to BlackBuck, it has a “strong case on merits,” and the business intends to appeal the notification to the relevant authority.
The logistics firm added that there would be “no material implications” for the business from the IT department’s order.
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.
It links small and large companies with shipping needs with truck fleet operators. Additionally, the organisation provides fuel cards and FASTag payments, GPS tracking and truck theft protection systems, certified communication channels between the shipper and the trucker, and vehicle financing options.
BlackBuck Financial Outlook
The logistics company’s fourth quarter (Q4) of the fiscal year 2024–25 (FY25) had a consolidated net profit of INR 280.1 Cr, compared to a net loss of INR 90.8 Cr in the same period last year.
A tax credit of INR 245 Cr during the reviewed quarter was the reason for the strong, profitable results. Operating revenues, on the other hand, increased by 30.6% to INR 121.8 Cr in Q4 FY25 from INR 93.2 Cr in the same period the previous year.
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.
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 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.
Zinka Logistics Solutions, the parent company of logistics giant BlackBuck, has received two tax notifications amounting to INR 14.2 crore. This encompasses a demand of INR 10.02 crore from the Assistant Commissioner of Commercial Taxes (Audit), Bengaluru, for the period from April 2020 to March 2021, and a demand of INR 4.18 crore from the Office of the Deputy Commissioner of Income Tax (TDS). The initial order, given on February 24, 2025, concerns the company purportedly misappropriating input tax credit (ITC) under GST amounting to INR 10.02 crore, as stated by BlackBuck in an exchange filing.
The notice states that the total tax liability is INR 2.88 crore under IGST, INR 3.56 crore under CGST, and INR 3.56 crore under KGST. Furthermore, the corporation has been mandated to remit an interest of INR 7.67 crore and a penalty of INR 1.02 crore.
Company’s Response
The logistics company stated in a separate exchange filing that the Income Tax agency had issued a tax demand for default for short-deduction/non-remittance of TDS totalling INR 4.18 Cr (with interest). According to BlackBuck, the firm feels it has a good argument on the grounds of both rulings. An appeal against the order will be submitted by the corporation to the relevant body. BlackBuck is a B2B marketplace for intercity full truckload (FTL) transportation that was founded in 2015 by Rama Subramaniam, Chanakya Hridaya, and Rajesh Yabaji, both of whom were graduates of IIT Kharagpur. Through its tech-enabled platform, it instantly links truck drivers with companies that need to ship.
BlackBuck’s Financial Outlook
After going public in November of last year, the company’s consolidated net loss increased 145% from INR 19.57 Cr in the previous quarter to INR 48.03 Cr in Q3 FY25. In Q3, however, it incurred INR 69.44 Cr in share-based payment expenses and INR 8.45 Cr in IPO expenses. The business would have reported a profit of INR 29.86 Cr from ongoing operations if not for these extraordinary factors. Meanwhile, its operating revenue increased 41% from INR 80.86 Cr in Q3 of FY25 to INR 113.98 Cr.
How BlackBuck Operates?
More than 93% of BlackBuck’s income comes from contract trucking. Additionally, it offers clients telemetry services that allow them to follow all trucks in real time, keeping an eye on their shipment during the entire process. Additionally, BlackBuck has a partnership with banks and marketers of petroleum goods for which it serves as an agent. It collects a commission for handling the management and distribution of radio frequency identification (RFID) tags.
The remaining amount of operating revenue is generated by these supplementary services. In exchange for business from the trucks it rents, the corporation receives a commission of roughly 15–25%. Its platform features truck services that are appropriately described, and its job is to match clients with trucks in an intelligent manner based on the needs of each individual. The heart of every invention is logistics.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.
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. Zinka Logistics, the parent organization of BlackBuck recently launched its IPO on 13th November 2024.
In this article, let’s explore the world of BlackBuck startup story, its founders, business model, revenue model, IPO, 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
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, and trustworthiness and thereby, brings 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 company 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 company serves both shippers and fleet operators with products and services designed for both.
BlackBuck Products and Services for Shippers:
BlackBuck Products and Services for Shippers
BlackBuck Products and Services for Fleet Operators:
BlackBuck Products and Services for Fleet Operators
BlackBuck – Industry
In 2024, truck sales in India are expected to reach 345.7k units. The market is predicted to grow at an annual rate of 2.59% from 2024 to 2030, with sales projected to reach 403k units by 2030.
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
BlackBuck Co-founders Ramasubramaniam B, Rajesh Yabaji, and Chanakya Hridaya (Left to Right)
Rajesh Yabaji, Chanakya Hridaya and Ramasubramaniam Bare 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 company 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 logistics company 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.
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 Logo
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 realized that there could be a larger play of trucks in the industry for technology to come in.
BlackBuck generates over 93% of its revenues from contract trucking services. 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. 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.
Since BlackBuck logostics company 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 as of August 2024:
Shareholder Name
Percentage
Accel India
17%
Quickroutes(Flipkart)
13%
Chanakya Hridaya
11%
Rajesh Kumar Naidu
11%
Ramasubramanian Balasubramaniam
11%
International Finance
8%
Sands Capital
6%
Goldman Sachs
3%
Others
21%
BlackBuck Shareholding (August 2024)
BlackBuck – Growth
Known as India’s largest trucking platform, BlackBuck takes pride in the service they provide. As of FY24, the platform had 963,345 transacting truck operators. 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 700K truckers and 1.2 million trucks on its platform, with over 15 million monthly transactions in 2024.
Blackbuck’s financial performance has seen fluctuations over the last few years, with revenue rebounding in FY24 but overall profitability challenges continuing.
Particulars
FY24
FY23
FY22
FY21
FY20
Revenue
INR 316.5 crore
INR 195.1 crore
INR 869.4 crore
INR 893.2 crore
INR 2,289.4 crore
Expenses
INR 483.4 crore
INR 431.8 crore
INR 1,153.7 crore
INR 1,134.6 crore
INR 2,741.7 crore
Profit/Loss
INR -167 crore
INR -236.8 crore
INR -284.6 crore
INR -241.4 crore
INR -452.4 crore
BlackBuck YoY Topline Growth
Blackbuck Revenue
Revenue increased from INR 195.1 crore in FY23 to INR 316.5 crore in FY24, reflecting a strong 62% growth. However, revenue remains significantly lower than previous highs in FY22 and FY20.
Revenue Breakdown
FY24
FY23
Revenue from product/service sales
INR 296.9 crore
INR 175.7 crore
Other income
INR 19.6 crore
INR 19.4 crore
Total Revenue
INR 316.5 crore
INR 195.1 crore
Blackbuck Profit/Loss:
Blackbuck reduced its loss from INR 236.8 crore in FY23 to INR 167 crore in FY24, showing an improvement in financial stability but still operating at a loss.
Profit/Loss Breakdown
FY24
FY23
Gross Profit
–
–
Operating Profit
–
–
Net Profit/(Loss)
INR -167 crore
INR -236.8 crore
Blackbuck Expenses:
Total expenses increased by 12% from INR 431.8 Cr in FY23 to INR 483.4 Cr in FY24, primarily due to rising employee costs.
Expense Breakdown
FY24
FY23
Employee Benefits
INR 286.9 crore
INR 219.6 crore
Finance Costs
INR 2.8 crore
INR 3.2 crore
Amortization & Depreciation
INR 25.3 crore
INR 20.5 crore
Other Expenses
INR 168.4 crore
INR 188.6 crore
Total Expenses
INR 483.4 crore
INR 431.8 crore
Quick Summary:
Revenue Growth: Increased by 62% in FY24 compared to FY23.
Loss Reduction: Net loss decreased from INR 236.8 Cr in FY23 to INR 167 Cr in FY24.
Rising Expenses: Overall expenses increased due to higher employee costs.
Business Implication: While revenue recovery is promising, Blackbuck still needs to control costs to achieve profitability.
BlackBuck – IPO
The Zinka Logistics (parent company of BlackBuck) IPO opened on November 13, 2024, and will close on November 18. The price of each share is between INR 259 and INR 273 for INR 1114.7 crore IPO. The company is raising INR 550 crore through a fresh issue of shares. As of November 14, the Zinka Logistics IPO had received 1.80 times more applications than the number of shares available, according to NSE data.
Currently, the grey market premium (GMP) for the BlackBuck IPO is zero, as the company’s unlisted shares are not changing in price, according to sources tracking the grey market.
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.
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. Company is also paying attention to digital growth solutions.
FAQs
What is BlackBuck company?
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 are BlackBuck founders?
Ramasubramaniam B, Rajesh Yabaji, and Chanakya Hridaya are the founders of BlackBuck company.
What is BlackBuck business model?
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.
What are the main BlackBuck company products?
BlackBuck provides products and services both for the shippers and the fleet operators.
What is BlackBuck net worth?
BlackBuck was last valued at INR 4818 crore in 2024.
On November 22, shares of Zinka Logistics Solutions, the parent company of logistics giant BlackBuck, went public on the NSE for INR 280.90, a slight premium of 2.89% over the IPO issue price of INR 273. BlackBuck’s shares debuted on the BSE at INR 279.05, which was 2.21% higher than the issue price.
Due to the Maharashtra Assembly elections, BlackBuck’s November 21 market debut was postponed by one day. BlackBuck’s INR 1,115 Cr initial public offering (IPO) was oversubscribed by 1.8X, with offers for 4.19 Cr shares compared to the 2.25 Cr shares available. The IPO took place between November 13 and November 18.
The Growth of the Company
BlackBuck was established in 2015 as a truck aggregator by Rajesh Yabaji, Chanakya Hridaya, and Rama Subramaniam. Since then, the business has expanded and currently provides a wide range of services, including truck financing, fuel payments, FASTag or toll costs, load management, and telemetry. BlackBuck is a business-to-business marketplace that specialises in full truckload (FTL) transportation between cities. BlackBuck’s initial public offering (IPO) consisted of both a new share issuance of INR 550 Cr and an offer for sale (OFS) component of over 2.06 Cr shares.
The retail investor quota was subscribed 1.65 times, whilst the qualified institutional buyers (QIBs) part was booked 2.76 times. While non-institutional investors (NIIs) subscribed to the issuance by 24%, BlackBuck employees oversubscribed their quota by 9.86X.
The Current Valuation of the Company
BlackBuck set its valuation at INR 4,800 Cr in the run-up to the INR 1,115 Cr IPO, which is more than 32% less than its peak valuation of INR 7,100 Cr in 2021. For its IPO, BlackBuck proposed a price range of INR 259 to INR 273 per share. Accel and Flipkart, two early investors, could realise up to five times their gains at the upper price range of INR 273. Nevertheless, companies such as Swedish investment firm VEF AB and Peak XV Partners would record losses on the sale of their fractional stakes.
IPO is Getting Popular Among Startups
With initial public offerings (IPOs) emerging as a crucial means of obtaining funding, the Indian startup scene is undergoing a significant transformation. For the second time in history, mainboard initial public offerings (IPOs) have raised more than INR 1 lakh crore in 2024. Over INR 1.03 lakh billion has been raised through 70 initial public offerings (IPOs) this year, the most since 2007. In contrast, 63 firms raised more than INR 1.19 lakh crore through IPOs in 2021, compared to 100 IPOs that were launched in 2007 and raised INR 34,179 crore.
This remarkable expansion coincides with a slowdown in the global IPO markets, which has seen a 16% drop in capital raised and a 12% drop in listings. India has distinguished itself on the international scene with its distinct blend of economic stability, a flourishing digital economy, and a developing private equity (PE) and venture capital (VC) ecosystem.
This year, there has also been a lot of fundraising activity for SME IPOs. A record INR 7,700 crore has been raised through 215 SME IPOs so far. In contrast, 182 businesses raised a total of more than INR 4,686 crore when they went public last year.
Funding is the money that new enterprises require to operate and achieve their objectives. Funding can come from a variety of sources, but investors are the most common. When investors put money into a company, they want it to succeed and make a lot of profit so that they can get their money back.
There are different types of investors out there like angel investors, personal investors, peer to peer lenders, venture capitalists and so on. There are major corporations that invest in startups and subsequently profit from their profits. It is a win-win situation for both parties.
Accel is one such company that invests in new businesses. It is well-known for its investments in IT firms, software, and internet enterprises. In this article, we’ll talk about Accel-backed startups.
In 2004, Facebook was just a social networking site Mark Zuckerberg launched in his dorm room at Harvard. In its initial days it was just a website for college students to connect to each other and later got spread to other colleges and universities as well. It received funding from Accel in 2005 and it got what it needed and went public in 2012. It became great news as Facebook is now worth US$159.32 billion (2020) and Accel gained a lot of profit from their investment and set an example for the others. Accel and Jim Breyer which is an American Venture Capital company and a partner of Accel owns 11.4% i.e. US$11.4 Billion.
Launched in 2011, Supercell has since released a lot of successful games like Clash of Clans, Boom Beach, Hay Day. These games have millions of active users and daily logins. When Supercell was a small, pre-launch game studio switching from Facebook games to focused on upcoming mobile platforms in 2011, Accel led its Series A investment. Softbank bought a majority stake in the company in 2013, which was then sold to Tencent in 2016.
Rovio
Rovio is a Finnish games-first entertainment company that designs, distributes, and licenses mobile games as well as works as a brand licensor in a variety of entertainment and consumer product categories. The Angry Birds brand, which began as a successful mobile game in 2009, is the company’s most well-known product. In October of 2017, Rovio went public on the Helsinki Stock Exchange. Accel funded with Series A in 2011 and then in 2017.
Etsy
Etsy is a website where entrepreneurial craftsmen, artists, and collectors may sell vintage, handcrafted, or custom-made jewellery, apparel, home décor, art, toys, and other items. Etsy is funded by 19 investors and one of them is Accel. The initial investment was done in January 2008, with follow-on investments in 2010, 2012 and an IPO in 2015.
Flipkart
Flipkart was created in 2007 by Sachin Bansal and Binny Bansal with the goal of introducing contemporary retail to India’s growing middle class. Initially focused on online bookstores, the company has expanded to include a wide range of products as well as its own nationwide logistics centres and delivery fleets, assuring a high-quality, end-to-end shopping experience for all customers. When Sachin and Binny were operating the company out of their apartment in 2009, Accel led the first-ever investment in Flipkart. Accel was a part of every succeeding fundraising round, and Flipkart was acquired (majority interest) by Walmart in 2018 after transforming India’s domestic consumer retail business in less than ten years.
Swiggy
Based in Bangalore, Swiggy is India’s most popular food delivery service. In addition to essentials, the company has created a general product delivery system, with a poppy orange, proprietary delivery fleet that sets it apart from other food delivery platforms. Accel first funded a Series A, B, C in 2015 and then a Series D in 2016 and Series E in 2017.
Urban Company
Urban Company, which was founded in 2014, has grown to become India’s largest at-home services marketplace. Users can connect with skilled and experienced service experts through the all-in-one platform. Accel first funded in 2015 and then in 2017.
BlackBuck
Founded in 2015, BlackBuck has become India’s largest trucking network by redefining the logistics of matching shippers with trucks in an organized and transparent way. The freight and services platforms deliver reliability, efficiency, and a seamless experience – whether it be matching a shipper with a truck, facilitating digital payments, or helping truckers manage their fleet effectively. The unique vertically integrated model is rapidly digitizing the entire online ecosystem of trucking in India. Accel gave it two investments in 2015, one in 2017, and one in 2019.
Freshworks
Since 2010, the company, then known as Freshdesk, has been at the forefront of democratising CRM software. Freshworks was renamed in 2017 to better reflect the company’s integrated array of SaaS products. The unique customer engagement software has become the trusted CRM for organisations of all sizes because it provides a ready-to-use, easy-to-setup and use solution. Accel was the first investor in the company, making the first investment in 2011, and has been a part of every subsequent financing round.
Money View
Money View offers no-collateral personal loans in a matter of hours. Money View’s loan application procedure is totally digital, from application to disbursement. The app allows you to maintain track of your loan’s progress, comprehend verification information, and receive notifications about forthcoming EMI payments. Accel invested in Money View in 2014.
Conclusion
Money is one of the most critical aspects of a new business. Without finances, a firm cannot start and acquire all of the other resources required to run and profit. Accel gives innovative enterprises with the capital they require to realise their objectives and turn a profit. It’s a terrific way for both sides to make money since as the business expands, so does the income.
FAQs
Who is the founder of Accel?
In 1983, Jim Swartz and Arthur Patterson co-founded Accel.
Who is the CEO of Accel?
Tara Abraham is the CEO of Accel.
How do you approach an Accel partner?
You should approach Accel with a brief overview of your project if you want them to invest in it. If your project is judged to be a good fit for Accel’s portfolio, you will be called for a more in-depth discussion.
What are the accel partners funded companies?
Accel partners has funded in many companies. Some of the companies tha are funded by Accel partners are:
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by TruckSuvidha
Trucks play a very important role in the Indian transportation sector. Studies have shown that over 65% of India’s cargo is being carried on trucks. With exploding domestic consumption rates in the country, improvement and extension of highways and warehousing facilities, truck transportation is gaining more momentum. However, the matter of concern here is that the truck transportation industry is still very unorganized and fragmented, due to which all the players of the industry, i.e the shipper, transporter, broker and fleet owners face problems.
TruckSuvidha, a logistics startupbased in Yamuna Nagar (Haryana) is instilling order to this unorganized sector by bringing together all the players of the truck transportation industry, for the mutual benefit of all.
Read more about TruckSuvidha Success Story, Business Model, Funding, Revenue, Growth, Logo etc.,
TruckSuvidha is ensuring quick transportation of essential commodities during the Global Pandemic. When the entire economy has come to halt during lockdown, one thing that is still moving is the transportation of food and other essential items from one place to another. TruckSuvidha, the first online portal developed for the transportation industry in India, had also shut its business temporarily during the lockdown.
Later, the government listed the start-up on National Agriculture Market (eNAM), an online portal that helps farmers avail the trucks for the transportation of food and related materials across the nation.
“We understand the seriousness of the situation. We have joined the mission of connecting farmers with truck drivers so that the essential commodities can be supplied at the earliest to ward off any shortage in the markets,” said Amit Punaini, Co-founder of TruckSuvidha
TruckSuvidha connects shipper, transporters, truck drivers, fleet owners, customers and all other entities related to truck transportation. Thus it makes transporting goods easy for shippers or transporters and likewise makes it easy for truck drivers or fleet owners to find load.
Founded in 2014, this startup envisions to bring all the players of the road transportation-related industry under one umbrella so that each one of them can provide better service to its customers.
Our long term vision is building a strong platform for them where they can easily search and avail the solution related to problems of transportation industry.
TruckSuvidha is one of the leading players of the transportation sector providing services to truck drivers, brokers, logistics, packers and movers, industries, fleet owners, commission agent, etc. Services offered by TruckSuvidha are –
Online Truck Booking Service
Facility to list your idle vehicles and get a return load
Displaying Real-time information on available loads and trucks.
Online and easy to access transport directory
“The USP of TruckSuvidha would be the concept, ease of use and the information it provides. This is a unique concept combined with a lot of field work and a host of people ready to be a part of it” the founders say.
TruckSuvidha authenticates the information of customers (transporters, packers & movers, individual/industries) who make registration on the site by verifying their mobile number and by taking pan card and service tax no, which makes the platform reliable.
The company has an excellent customer care team that sees to it that the users who are not so much educated and are not comfortable in using the platform get all the assistance required.
TruckSuvidha – Founders and Team
Amit Punaini and Ishu Bansal are the founders of TruckSuvidha.
Amit Punaini and Ishu Bansal – Founders, TruckSuvidha
Amit Puniani is a passionate businessman, who has always wanted to start a venture which could be helpful for society. Thus he along with Ishu Bansal started TruckSuvidha with the aim to organize the unorganized truck transportation sector.
Ishu Bansal, a software engineer by profession also had a dream to have a startup through which he could make a positive difference in society.
As it is said, like minds think alike, Ishu with his technical background, and Amit with his resources are set on a path to make an impact in the lives of the not so educated section of people, who are associated with truck transportation, with the help of technology.
Currently, TruckSuvidha has a team size of about 45-50 members.
Team TruckSuvidha
How Did TruckSuvidha Start?
Ishu was a software engineer by profession, and was doing well in his career but somehow felt that it was not his calling to be just another software engineer. He wanted to do something more worthwhile. Ishu’s family owned a plywood manufacturing unit. He observed how problematic it was to transport manufactured goods. He saw that there were always some or the other issue that businesses have to face in transporting their goods. This instigated Ishu to do something to solve this problem. As he usually does, he discussed this idea with Amit. Being from a business background, Amit too found the idea interesting and decided to be a part of it, ultimately leading to the inception of TruckSuvidha.
The duo started their journey from a visit to the Azadpur Mandi and interacting with the people who actually are in this industry. This made them believe that they are on the right path and could do something to bring about a change to the lives of these people associated with the transportation of goods. TruckSuvidha was launched in September 2014 in Yamuna Nagar, Haryana.
We realized how unorganized this sector was, which required a bit of technology & innovation to turn things around. Some common problems were the hassle a customer has to face while booking a truck, difficult life of a truck driver and potential business losses faced by transporters all of which had a solution. We are here to provide that solution.
The name TruckSuvidha depicts the core services provided by the company.
The brand name “TruckSuvidha” is short, easy to pronounce, and users easily understand that what we are offerings.
TruckSuvidha Logo
TruckSuvidha’s tagline is “Think Ahead”, which reflects the aim and vision of the company. The company’s logo is simple and easily identifiable.
TruckSuvidha – Business Model and How it works
With TruckSuvidha, the user gets all freight transport solutions under one roof. With a few clicks, user can register as a customer, transporter or packer or mover. Trucksuvidha.com is offering free load posting to all the big and small transport players as well as to other sectors that are directly or indirectly linked with the transport sector and free listing their firm on the website.
The customer can choose the city, date, material, weight and truck type as per their choice and book a vehicle for transportation without having to talk to transporters directly.
The transporters can list their entire catalog of vehicles available. Customer’s requests will directly reach the transporter. TruckSuvidha will get requests directly from the customer as well as the transporter.
TruckSuvidha works on a subscription based revenue model. It provides a range of subscriptions from half yearly to yearly depending upon one’s requirement. As it targets truckers, transporters and service providers alike the subscription packages are specific to their needs. Apart from the core vendor details, everything is free on the website.
TruckSuvidha – Funding and Investors
TruckSuvidha raised an undisclosed amount led by Gas Authority of India Limited (GAIL) as Seed Round in November 2019. GAIL is the Government of India owned natural gas processing company that received the Maharatna status in 2013. With its presence in 32 Indian cities, 34000 registered transporters and 332000 trucks with an average of 1550 bookings each day, TruckSuvidha aims to expand its territory to more Indian cities and reinforce the backend technology.
TruckSuvidha – User Acquisition
TruckSuvidha uses digital platforms to reach out to its targeted customers. Creating brand awareness helped TruckSuvidha to acquire its first set of customers within a short span of time. The company strives to provide excellent services to its users to retain the customer base.
Running any business without cash flow is the most difficult phase for any business as rightly said by Ishu and Amit. The TruckSuvidha team manages the cash flow constraints by making the right strategies, identifying important expenses and through optimization of resources.
Some other challenges that the team is facing are-
Winning the trust of people, as people think that digital platforms are not safe and secure.
Providing knowledge of the internet to the users.
Changing the mindset of the people who are habituated to work in the traditional way.
TruckSuvidha – Competitors
Rivigo and Blackbuck are some competitors of TruckSuvidha. However, TruckSuvidha’s market existence is more than that of its competitors as claimed by the founders. Besides, it also promises to offer its users easy and affordable subscription plans in comparison to the competitors.
Most of our competitors have a sizeable cut in eat and every deal, on the other hand, we offer our services at easily affordable prices. Our services and subscriptions are unique and we plan to introduce more such facilities over a period of time which nor only proves helpful for the customers but the entire industry as a whole.
As said by the founders, earlier the transporters were not even ready to get registered but now they are doing self-registration and calling TruckSuvidha for the services, which is a great achievement.
TruckSuvidha currently has over 33933 transporters in its network. Besides, around 16898 customers and 1968 packers and movers are associated with TruckSuvidha. The revenue earned annually by the company is approximately $4 Million.
For us, every single customer is valuable. For inviting customer, it is most important that you must have something that is satisfying the need of the society. We are happy that we had built something that is actually what they required.
Frequently Asked Questions – FAQs
Who is the founder of TruckSuvidha?
Amit Punaini and Ishu Bansal are the founders of TruckSuvidha.
