BlackBuck, a Bangalore-based freight-booking startup, has raised fresh funding to spread to more cities, expand its team and build more products.
The $25 million series B round was led by Tiger Global, Apoletto (Yuri Milner’s Founders Fund), Accel and Flipkart. BlackBuck, registered as Zinka Logistics Solutions, had raised $6 million in June.
BlackBuck was founded by Rajesh Yabaji — also the chief executive — in 2014, and has a team of 200 people, with operations in 40 cities. They will use part of the funding to expand to 200 cities by 2016.
India’s logistics sector is largely unorganised and fragmented. Startups trying to plug that gap and bring more reliability have attracted investor interest because of the huge opportunity it represents. The freight industry is estimated to be worth $100 billion in the next five years.
“Transportation is the largest unorganized sector globally. A majority of this is inter-city logistics. However, the commerce of this industry is unorganized, fragmented and conducted offline. BlackBuck has been formed to re-create logistics commerce with technology at its core, which would enable logistics be simple & effective,” said Yabaji in a statement.
Yabaji co-founded the company with Chanakya Hridaya, and logistics industry veteran Ramasubramaniam B.
The startup counts major companies such as Asian Paints, Unilever, Britannia, Godrej, Marico, Jyothy Laboratories and EID Parry among its clients.
“BlackBuck’s tech enabled marketplace model makes them uniquely placed to scale rapidly, in a large industry that is highly fragmented with very little technology penetration,” said Anand Daniel, Accel Partners in a statement.
Binny Bansal, co-founder of Flipkart, India’s largest online marketplace, said that BlackBuck will strengthen his company’s supply chain, and makes for a good strategic fit.