– The company and its subsidiary, TZF Logistics Solutions Private Limited, have experienced losses and have had negative operating cash flows previously. Additionally, their subsidiary, BlackBuck Finserve Private Limited, has reported negative operating cash flows for the last three financial years.
The company's income heavily relies on their payments and telematics services, which accounted for 92.79% and 94.53% of their overall revenue from ongoing operations in the three months ending June 30, 2024, and Fiscal 2024, respectively.
The company relies on specific key suppliers to obtain a considerable part of their vehicle tracking solutions. They do not establish long-term contracts with these suppliers, so any denial of supplies, loss of relationships with them, or interruptions in the supply chain could negatively impact their business
– The company stands as the largest digital platform for truck operators in India in Fiscal 2024, representing 27.52% of the nation's truck operators. A failure to attract new truck operators or to retain current ones could significantly negatively impact their business, operational results, and financial standing.
– The company plans to allocate a portion of the Net Proceeds for investment in Blackbuck Finserve Private Limited, their non-banking financial company subsidiary, which lacks a well-established operational history, to enhance its capital base and fulfill future capital needs.
– The company utilises specific services from third-party providers on their platform to execute their sales and service strategy, and any interruption or obstruction in their access to these services could negatively impact their business, operational results, and financial health.
– The company's product development initiatives might not achieve the anticipated success or deliver the expected returns or advantages, and they may struggle to provide their customers with innovative solutions and uphold their competitive edge.