Zinka Logistics Chairman Shares Three Investment Areas In Focus Post IPO

Flipkart-backed Zinka Logistics Solutions Ltd., which operates trucking services platform Blackbuck, will continue to create new offerings, build its platforms and invest in distribution to maintain growth, its Chairman and Chief Executive Officer Rajesh Yabaji said.

Shares of Zinka Logistics listed at a premium of 2.89% on the NSE, at Rs 280.9 apiece over its IPO price of Rs 273 apiece on Friday. On the BSE, the stock listed at Rs 279.05 per share, at a premium of 2.22%.

Yabaji, who is also managing director of the company, spelt out the company's “game plan” in conversation with NDTV Profit.

“Over the years, I think the company has done well in three different dimensions, and I think those dimensions are the ones which we are doubling down in the future as well,” he said.

He noted how Zinka Logistics had “continuously strived to innovate, to create new offerings for truckers.”

“We’ve launched multiple new services year after year. So that's a place where a lot of the investment also is going to go in the future,” he added.

Yabaji also mentioned that investments would be directed to their platform, which he touted as the “second biggest area” of the company.

“We're going to double down on product and technology, product research to ensure this platform continues to scale,” he said.

The third aspect, where the IPO proceeds would be utilised, are the sales and distribution and servicing network.

“So, yes, the game plan continues to be the same as it was the last five years. These three areas of creating new offerings, building a platform which customers love, and investing in distribution, to really be closer to the customer are the three areas we're going to continue to invest in,” Yabaji noted.

The top executive said Zinka Logistics had retained its growth pace.

“We are a technology platform, a platform fee, subscription fee, commission kind of business where revenues are compounding at a very healthy pace,” he said.

Yabaji mentioned their margins remained in the 92-93% range.

He was confident of the company's strong and consistent performance going ahead too.

“If you see the numbers between Q1 FY25 and Q1 FY24, you would see that the growth in contribution margin, about 75% of that, has flown down into the back level. So, that's the kind of nature of revenues we have, and that's the kind of operating leverage we'll continue to enjoy,” he added.

Shares of Zinka Logistics Solutions Ltd. lost early gains after listing and plunged 6.66% to touch an intraday low of Rs 260.2 apiece on the NSE by 11:38 a.m., compared to a 0.89% rally in the benchmark Nifty.