IFC to invest $10 million in online freight-booking service Zinka Logistics

Bengaluru-based Zinka connects large and small shippers with truck owners

International Finance Corporation (IFC) is planning to invest around $10 million as equity in Zinka Logistics (previously called, Blackbuck), a technology platform for long-haul trucking.  

Zinka's existing investors include Accel Partners, Tiger Global, Apoletto and Flipkart Logistics.

The proposed investment will be in the form of equity for a minority stake to support the expansion of the company’s service offerings and further technology development. 

Zinka will use the funding to expand its service offerings and further technology development, IFC said.

Bengaluru-based Zinka, founded by Rajesh Yabaji, Chanakya Hridaya, and Bala Ramasubramania in April 2015 and launched in July 2016 is the leading load board in India with around 80,000 verified trucks on its platform. Through its mobile app interface, the company connects large and small shippers with truck owners and operators to book full-truck-load (FTL) freight for inter-city transportation.

The company has two different models including organised contracted freight - formal contracts with shippers (a number of big companies including multi-national companies) to move freight for predetermined routes at pre-negotiated price and auctions of freight just-in-time through the app marketplace; and unorganised spot market freight - where shippers use app to source truckers for immediate needs.

Zinka also provides support in using ancillary services (like toll cards and fuel cards) to drivers with some partners like a non-banking finance company and petroleum retailers. The company, however, does not provide services for transportation of hazardous or dangerous goods.

The long-haul FTL trucking market in India is currently estimated around $70 billion and is largely offline and informal. Trucks in India on average have 33 per cent utilisation, meaning they are either sitting or travelling empty, or are only partially filled a majority of the time.