Founded in 2015, Zinka Logistics Solutions Limited has grown into India’s largest digital platform for truck operators as of FY24, representing 27.52% of the country’s truck operator base. Over 9.63 lakh truck operators engage on its platform, which operates through the BlackBuck app. This platform provides a suite of services, including payments, telematics, a loads marketplace, and vehicle financing tailored for truck operators. Zinka has also partnered with FASTag banks for tolling solutions and multiple oil marketing companies (OMCs) for fuel offerings.
Through BlackBuck, Zinka facilitates real-time tracking for fleet movements, links truck operators with load shippers, and offers financing options specifically for used commercial vehicles. The company’s revenue model includes commissions from FASTag transactions and fuel partnerships, as well as subscription fees for telematics solutions and service fees for vehicle financing.
As of June 30, 2024, Zinka Logistics reported 3,90,088 average monthly active telematics devices, 0.71 million load postings, and enabled services for 133,369 truck operators. Additionally, it disbursed 5,109 loans totalling ₹252 crore and recorded a Gross Transaction Value (GTV) of ₹5,356 crore in Q1 FY25.
The company follows an omnichannel strategy, comprising 9,374 touchpoints across 80% of India’s districts and 76% of the toll plaza network, supporting digital onboarding and product servicing. Its reach includes a telesales team of 843 members and 587 channel partners, bolstering its distribution network.
Despite a consistent revenue growth of over 35% CAGR from FY22 to FY24, the company has faced recurring losses, reporting losses of ₹284 crore, ₹290 crore, and ₹193 crore in FY22, FY23, and FY24 respectively. Nevertheless, the Indian trucking industry, estimated at a revenue pool of $18-25 billion in FY24, is projected to reach $35 billion by FY28, presenting significant growth potential for Zinka.
Now, Zinka Logistics Solutions launched its IPO, with a total issue size of ₹1,114.72 crore. This includes a fresh issue aggregating to ₹550 crore and an offer for sale worth ₹564.72 crore. The funds raised will be allocated to sales and marketing, investment in its NBFC subsidiary, product development, and other corporate needs. Zinka’s shares will be listed on the NSE and BSE.
Key Details
- Company Name: Zinka Logistics Solutions Limited
- Founded: April 20, 2015
- CEO: Rajesh Kumar Naidu Yabaji
Financial snapshot
| Particulars | FY23 | FY24 | Q1FY25 |
|---|---|---|---|
| Revenue | ₹ 119 crore | ₹ 175 crore | ₹ 296 crore |
| Net Loss | ₹ 284 crore | ₹ 290 crore | ₹ 193 crore |
Strengths and opportunities
Zinka Logistics Solutions is India’s largest digital platform for trucking, with over 413.34 million transactions and 9,63,345 truckers active on its platform in FY24. Its strong customer retention rates - 93.51% in the first year, 76.04% in the second and 66.25% in the third - demonstrate the platform’s effectiveness in building loyalty. Zinka’s agile approach to product development, such as its payment solution that reached 1,00,000 users in just 33 months, demonstrates its ability to respond quickly to market demand. There’s also predictable revenue from tolling, fuelling, and telematics subscriptions.
Risks and threats
The company has faced ongoing financial challenges and has reported losses and negative cash flows for the last three financial years. The company’s heavy reliance on key partnerships with OMCs, FASTag banks and financial institutions means that any disruption could have a direct impact on revenues. Zinka plans to invest IPO proceeds in Blackbuck Finserve, a nascent NBFC subsidiary, adding an element of uncertainty. Regulatory changes also pose a risk, as evolving laws could impact operations. In addition, fluctuating fuel prices and seasonal demand affect truck volumes, while a high attrition rate (41% in FY24) threatens operational continuity. Zinka’s NBFC business faces stiff competition from established players such as Shriram Finance, ICICI Bank and HDFC Bank, among others.
You can now apply for the Zinka Logistics Solutions IPO on Upstox. Click here.