BlackBuck raised $67 million in a funding round led by Silicon Valley-based venture fund Tribe Capital, IFC Emerging Asia Fund and VEF. Blackbuck’s existing investors, Wellington Management, Sands Capital, and International Finance Corp., have also participated in the round.
The company will use the funds for the development and launching of new services for its customer base. BlackBuck’s Co-founder and CEO Rajesh Yabaji said that the company would use the new capital to invest massively in product and data science skills to discover better efficiency in freight matching for the Indian trucking ecosystem. The startup will also scale its financial services and insurance offerings through partnerships.
“Other than e-commerce, no other sector did well in the logistics space. Truck owners did not have enough jobs for multiple months. So, even for us, it was important to work through this pandemic and give better offerings. This funding round is a validation of our story,” Yabaji said.
The company has now seen a change in demand, with most of it coming from small businesses, brokers and large-scale outfits against major enterprises before, According to Yabaji. “Over the last two years, digital adoption has grown bigger. We have seen a 20X growth in supply-side while there has been a 10X growth in demand over the last two years,” he added.