The IPO is a mix of fresh issuance of Rs 550 crore and an offer for sale (OFS) of up to 2.16 crore equity shares by promoters and investor selling shareholders.
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Under the OFS, Rajesh Kumar Naidu Yabaji, Ramasubramanian Balasubramaniam, Chanakya Hridaya, Accel India, Quickroutes International, International Finance Corp, Sands Capital, GSAM Holdings, Accel Growth Fund V and Internet Fund III Pte will offload shares.
The company, in consultation with the book-running lead manager, may also consider a pre-IPO placement, which will not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced. The offer is being made through the book-building process, wherein about 75% is reserved for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors.The proceeds from its fresh issuance will be utilised for funding towards sales and marketing costs, investment in Blackbuck Finserve for financing the augmentation of its capital base to meet its future capital requirements, and expenditure concerning product development and general corporate purposes.Zinka Logistics is dedicated to transforming the trucking industry in India by digitally empowering truck operators to manage their businesses and increase their earnings. The company’s innovative BlackBuck app serves as a comprehensive platform, providing solutions for payments, telematics, load management, and vehicle financing.
The BlackBuck app, central to Zinka Logistics’ offerings, empowers truck operators to manage various aspects of their operations. Through the app, operators can handle payments for tolling and fueling, monitor drivers and fleets using telematics, find loads on the marketplace, and access financing for purchasing used vehicles.
In FY24, the app saw robust engagement, with monthly active truck operators using it for over 16.18 days per month and spending an average of 39.56 minutes daily on the platform.
Zinka Logistics processed a gross transaction value (GTV) of Rs 17,396.19 crore in payments for FY24. The payments platform addresses significant expenses for truck operators, such as tolls and fuel.
The company’s consolidated revenue from continuing operations increased by 69.01% to Rs 296.92 crore in FY24 from Rs 175.68 crore in FY23, primarily due to an increase in its average monthly transacting truck operators, which led to an increase in its commission income, subscription fees, and service fees.
Axis Capital, Morgan Stanley India, JM Financial, and IIFL Securities are the book-running lead managers and KFin Technologies is the registrar of the offer.