BlackBuck aims to achieve 10% organised freight movement

Bengaluru-based online logistics marketplace BlackBuck aims to achieve 10% of the overall organised freight movement on its platform, within the next two to three years.

Founded by Rajesh Yabaji, Chanakya Hridaya and Ramasubramaniam in April 2015, BlackBuck brings truckers and customers on a platform to execute the transaction using intelligent auction engines equipped with smart mobile interfaces. Integration of technology with on-ground execution helps manage execution in a most effective manner.

Currently, it serves over 200 customers which include Unilever, Hindustan CocaCola Beverages, Jyothy Laboratories, Amul, Britannia, Godrej, Asian Paints, and ITC, among others. Also, there are more than 60,000 trucks empanelled on the platform from 250 locations across India.

Till date, BlackBuck has raised a total of $30 million through Series A and B funding, which includes funds from Flipkart, Accel Partners, and Tiger Global, among others.

When asked about the beginnings, Yabaji said, “During my stint at ITC, I led the task of transforming the supply chain. Freight was an area which took a high spread of costs and it was really difficult to execute any change in the way things were executed. The idea of building BlackBuck came across during this stint, when I met Ramasubramaniam and Chanakya, with whom I shared similar passion for this industry to bring in a positive impact. This is how BlackBuck was born.”

In terms of the company’s effective execution strategy, it is carried through four aspects. First, the direct procurement platform aggregates the supply from the freight market, ensuring availability of freight to customers in a reliable way. Depending on demand, continuous aggregation and empanelment is taken up for the BlackBuck platform.

Second, quality benchmarking ensures that trucks are empanelled through a standard quality auditing and verification process, which ensures quality shipping standards. BlackBuck audits trucks at periodic intervals depending on usage.

Third, monitoring and control sees to it that with investment in technology in the empanelled trucks, BlackBuck delivers track and trace facility for its customers, where the entire shipment can be monitored from the placement at source to dispatch, after the unloading process at the destination. Lastly, data analytics on the overall transportation provides all the information to the customer in a single-view, helping him effectively manage transportation.

On challenges, Yabaji said, “When we started the business, we had no support from neither customers nor supply partners. This phase was critical, as we had to establish ourselves and prove the value we were bringing to the table.”

“For the business to scale, it was extremely important for us to persuade the supply fraternity to abandon age-old practices of doing business, and bring them on the online platform... I think it’s important that quality time and effort are spent on all problems. Every problem you solve helps you add value to the business,” he added. The logistics industry of freight contributes to 6% of India’s GDP. Majority of this portion is inter-city logistics. It is estimated to be a $100 billion market in India.