Backed by Flipkart and Accel, Zinka Logistics files for Rs 550 crore IPO

Zinka’s consolidated revenue rose 69 percent to Rs 296.92 crore in fiscal 2024 from Rs 175.68 crore in fiscal 2023.
Backed by Flipkart and Accel, Zinka Logistics files for Rs 550 crore IPO

Bengaluru-based Zinka Logistics Solutions, backed by the Walmart owned ecommerce major Flipkart and Accel, and which claims to the largest domestic digital platform for truck operators, has filed for a Rs 550-crore primary share sale.

According to the draft red herring prospectus (DRHP) filed with the markets regulator Securities and Exchange Board (Sebi), the issue will be a mix of fresh issuance of Rs 550 crore and an offer for sale of up to 21.61 million equity shares of face value of Re 1, by promoters and investor selling shareholders. The filing did not quantify the FPO size as the price band has not been arrived at.

The offer for sale consists of 22.19 lakh share sale by Rajesh Kumar Naidu Yabaji, 11.09 lakh by Chanakya Hridaya, 11.09 lakh by Ramasubramanian Balasubramaniam, 43.09 lakh by Accel India, 39.74 lakh by Quickroutes International, 17.12 lakh by International Finance Corporation, 13.24 lakh by Sands Capital Private Growth II 9.27 lakh equity shares by GSAM Holdings, 9.23 lakh equity shares by Accel Growth Fund V and 8.83 lakh equity shares by Internet Fund III, according to the filing.

The proceeds from the fresh issuance to the extent of Rs 200 crore will be used for sales and marketing costs, Rs 140 crore for investment in Blackbuck Finserve for financing the augmentation of its capital base to meet its future capital requirements, and Rs 75 crore for funding of expenditure in relation to product development and general corporate purposes.

Zinka Logistics is transforming the domestic trucking industry by digitally empowering truck operators to manage their businesses and increase their earnings using its Blackbuck app that serves as a comprehensive platform, providing solutions for payments, telematics, load management and vehicle financing.

As of March 2024, Zinka had over 1,780 permanent employees and over 3,630 contract workers and a fleet of 963,345 truck operators on its platform, up from 482,446 in fiscal 2022, which is 27.5 percent of the number of truck operators in the country. It has a network of 9,395 touch points across 628 districts and 75 percent of the toll plaza network.

Zinka’s consolidated revenue rose 69 percent to Rs 296.92 crore in fiscal 2024 from Rs 175.68 crore in fiscal 2023.

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