About Company

• Incorporated on April 20, 2015, Zinka Logistics Solutions (“Zinka”) is an India’s largest digital platform for truck operators (in terms of number of users), with 963,345 truck operators in the country transacting on their platform in Fiscal 2024, which comprises 27.52% of India’s truck operators.

• Using their platform, their customers (primarily comprising truck operators) digitally manage payments for tolling and fuelling, monitor drivers and fleets using telematics, find loads on their marketplace and get access to financing for the purchase of used vehicles. Truck operators use the BlackBuck mobile application (the “BlackBuck App”) for their diverse business needs.

• The gross transaction value (“GTV”) in payments was ?5,356.20 crore and ?17,396.19 crore in the 3 months ended June 30, 2024 and Fiscal 2024, respectively. Their customers recharge for tolling and fuelling through the BlackBuck App into the payment instrument of the FASTag and fuel partners. Truck operators manage their truck-level tolling and fuelling operations through the BlackBuck App, and gain cost benefits and effective control over expenses through decreased risk of pilferage and unauthorized spending.

• Truck operators purchase telematics services such as vehicle tracking and fuel sensors to manage their drivers and fleets. Zinka had 390,088 and 356,050 average monthly active telematics devices in the 3 months ended June 30, 2024 and Fiscal 2024, respectively.

• Truck operators use their loads marketplace product to search for loads to fill their empty capacities or to get a better price for a load. Zinka had 0.71 million and 2.12 million load postings in the 3 months ended June 30, 2024 and Fiscal 2024, respectively, which enabled 133,369 and 256,685 truck operators to get a load during the same periods.

• Truck operators avail used commercial vehicle financing through their platform. As on June 30, 2024, they have facilitated disbursements of ?252.76 crore. 

• Company’s offerings solve critical problems for their customers and form an integral part of their daily lives. In the 3 months ended June 30, 2024 and Fiscal 2024, their monthly transacting truck operators were active for more than 16.26 days and 16.18 days, respectively, in a month and on an average spent 41.54 minutes and 39.56 minutes, respectively, daily, on the BlackBuck App.

• Zinka has the largest physical network (in terms of number of Touchpoints) across India and as of June 30, 2024, they have sold and serviced their products across 628 districts constituting 80% of India’s districts, including in all the major transportation hubs and across 76% of the toll plaza network in India. They have a digitally enabled network of 9,374 touchpoints to conduct onboarding and servicing activities as of June 30, 2024.

Strengths

Competitive Strength 

• India’s largest digital platform for truck operators;

• Strong network effects of platform resulting in robust customer retention rates and higher monetization;

• Repeatable playbook of creating and launching new offerings;

• Omnichannel distribution network with robust sales and service strategy driving customer adoption;

• Scalable and reliable in-house technology integrating with multiple stakeholders;

• High growth business with operating leverage and strong unit economics;

• Promoter-led management team and an experienced board.

Business Strategies 

• Deepen distribution and continue strengthening the truck operator base;

• Continue investing in the core verticals of payments and telematics;
• Focus on growing the loads marketplace and vehicle finance verticals;
• Continue to innovate, launch new offerings and solve problems for truck operators;
• Continue to scale and invest in technology infrastructure and data science capabilities.

Company Promoters

Company Financials

Zinka Logistics Solution Limited's revenue increased by 62.24% and profit after tax (PAT) rose by 33.24% between the financial year ending with March 31, 2024 and March 31, 2023.

Objects of the Issue

The company propose to utilise the Net Proceeds towards funding the following objects:

1. Funding towards sales and marketing costs;
2. Investment in Blackbuck Finserve Private Limited, its NBFC subsidiary, for financing the augmentation of its capital base to meet its future capital requirements;
3. Funding of expenditure about product development; and
4. General corporate purposes.