Yuri Milner and Tiger Global lead $25 million funding into logistics startup BlackBuckJai Vardhan
Bengaluru-based online logistics marketplace BlackBuck has raised $25 million in a Series B round led by Tiger Global and Apoletto, DST Global-Yuri Milner’s Founders Fund. Existing investors, Accel Partners and Flipkart also participated in this round.
Accel and Flipkart had invested $5 million in the company earlier this year. BlackBuck will use the fresh funds to ramp up expansion, build products and set up the team.
Founded by Rajesh Yabaji, Chanakya Hridaya and Rama subramaniam in April this year, BlackBuck helps companies move full truckloads between cities. Currently, it has a team of 200 and has a presence in 40 cities.
Rajesh Yabaji, Co-Founder and CEO, BlackBuck said,
BlackBuck has been formed to re-create logistics commerce with technology at its core, which would enable logistics be simple & effective. The problem we are solving is same across the world, BlackBuck’s vision is to solve it for the world and become the largest transportation company globally.
BlackBuck essentially brings truckers and merchants on a platform to execute the transaction using intelligent auction engines equipped with smart mobile interfaces. The company intends to expand to 200 locations next year and has clients like Asian Paints, Unilever, Britannia, Godrej, Marico, Jyothy Laboratories and EID Parry.
Control of logistics and supply chain will be deciding factor for success of e-commerce companies and Flipkart’s interest in BlackBuck is a strategic move to strengthen logistics quotient.
Speaking on the investment Binny Bansal, COO and Co-founder of Flipkart, said
Our investment in BlackBuck is a continuation of our strategy of developing and integrating this ecosystem. BlackBuck brings in new tech capabilities that will not only strengthen Flipkart’s supply chain, but will also pave the way for innovations in this area. This partnership is an excellent strategic fit for us.
A few months back, Flipkart re-acquired its logistics business from WS Retail, the biggest merchant on the platform. WS Retail, too, used to be a subsidiary of Flipkart.
This is the fourth major investment in logistics this year. In October, Gojavas had raised $20 million from Snapdeal. Ecom Express raised $133 million from Warburg Pincus in June. The BlackBuck investment is the second logistics company Tiger Global is backing. In May, Tiger had led Delhivery's $85 million funding round.
Rajesh estimates that India’s freight industry is worth $100 billion now. That is a large industry, but it is also an extremely fragmented one. India’s young e-commerce industry, which is expected to reach the $100 billion mark in FY20 according to Goldman Sachs, is just one of the sectors that need fast, cost-effective and reliable logistics support.
Already, we have seen the emergence of companies like BlackBuck, Delhivery, GoJavas, Ecom Express and a host of on-demand companies that cater to within-the-city goods movement. With biggies like Flipkart, Tiger, DST, Snapdeal, Warburg Pincus and others showing interest and putting serious money into this sector, we will hopefully see a more efficient and powerful logistics network in the country.