Logistics company BlackBuck sees revenues grow seven-fold, losses grow five times in FY17
, ET Bureau|
Updated: Dec 12, 2017, 10.50 AM IST
BENGALURU: Logistics company BlackBuck has seen revenue grow seven-fold, while its losses also grew more than five times in the financial year 2016-17, in which the Tiger Global-backed company also said it reached operational break-even.
Zinka Logistics Solutions (the registered name of BlackBuck) saw revenues grow to to Rs 566 crore in FY 16-17 from Rs 81 crore the year before while losses increased to Rs 86 crore from Rs 16.5 crore, as per documents filed with the Registrar of Companies and sourced from Tofler.
“The robust growth was also coupled with operational break-even of the company operations. This was driven by strong unit economics of the business model of BlackBuck and strong customer (shippers and carriers) confidence,” the company said in a statement.
BlackBuck has raised $100 million from investors like Tiger Global, Accel Partners, Flipkart, Apolleto Asia LTD, IFC, and Sands Capital.
The company saw its transportation costs shoot up to Rs 573 crore from Rs 82 crore last year, with lorry hire charges going up to Rs 528 crore from Rs 76 crore.
Blackbuck has over 120,000 trucks on the platform, operating in 300 locations. It has over 400 customers including SME’s and large corporates.
“Most of the losses are of investment-nature and purely directed into technology and products. We will be ramping up our investments in these areas,” the company said.
Like with other companies in the logistics space, BlackBuck’s growth was hit by demonetization.
“Demonetization led to dramatic drop in shipment volumes of clients and hence led to drop in revenues for BlackBuck. The posted revenues would have been much higher without demonetization,’” the company said.
In the current financial year FY18, the Goods and Services Tax (GST) is likely to play into the company’s financials.
“Macroeconomic factors like GST and their downstream effect into the logistics industry would affect the ecosystem in FY18 and company expects to be in a strong position to take advantage of the same,” Zinka Logistics said in the MCA filing.
“With another year's worth of data with the company to aid it's pricing and matchmaking algorithms, we expect to have healthier and stable margins in the next year negating effects of seasonality and short-term price variability,” the company said.
Zinka Logistics Solutions (the registered name of BlackBuck) saw revenues grow to to Rs 566 crore in FY 16-17 from Rs 81 crore the year before while losses increased to Rs 86 crore from Rs 16.5 crore, as per documents filed with the Registrar of Companies and sourced from Tofler.
“The robust growth was also coupled with operational break-even of the company operations. This was driven by strong unit economics of the business model of BlackBuck and strong customer (shippers and carriers) confidence,” the company said in a statement.
BlackBuck has raised $100 million from investors like Tiger Global, Accel Partners, Flipkart, Apolleto Asia LTD, IFC, and Sands Capital.
The company saw its transportation costs shoot up to Rs 573 crore from Rs 82 crore last year, with lorry hire charges going up to Rs 528 crore from Rs 76 crore.
Blackbuck has over 120,000 trucks on the platform, operating in 300 locations. It has over 400 customers including SME’s and large corporates.
“Most of the losses are of investment-nature and purely directed into technology and products. We will be ramping up our investments in these areas,” the company said.
Like with other companies in the logistics space, BlackBuck’s growth was hit by demonetization.
“Demonetization led to dramatic drop in shipment volumes of clients and hence led to drop in revenues for BlackBuck. The posted revenues would have been much higher without demonetization,’” the company said.
In the current financial year FY18, the Goods and Services Tax (GST) is likely to play into the company’s financials.
“Macroeconomic factors like GST and their downstream effect into the logistics industry would affect the ecosystem in FY18 and company expects to be in a strong position to take advantage of the same,” Zinka Logistics said in the MCA filing.
“With another year's worth of data with the company to aid it's pricing and matchmaking algorithms, we expect to have healthier and stable margins in the next year negating effects of seasonality and short-term price variability,” the company said.
