 "Shiprocket loss widens to Rs 595 cr in FY24 on restructuring costs")
Logistics aggregator Shiprocket has reported widening of loss to Rs 595 crore in the financial year 2024 on account of one-time restructuring cost, employee stock ownership plan and investments in emerging business.
Shiprocket had posted a loss of Rs 340 crore in the fiscal year 2022-23.
"Rs (-) 595 crore profit after tax is attributed to: One-time restructuring and integration costs of Rs 244 crore related to acquired businesses, significant ESOPs worth Rs 192 crore during the year, investment in emerging businesses," Shiprocket said in a statement.
Shiprocket said that the company has reduced cash flow burn by almost half to Rs 100 crore in FY'24 from Rs 191 crore in FY'23 and is on path to full profitability in the current fiscal year.
"The company also announced that the first two quarters of this financial year ending September 2024 are already profitable, positioning it well ahead of its goal to achieve full profitability by FY 2025," the statement said.
The revenue of the company increased by 21 per cent to Rs 1,316 crore in FY'24 from Rs 1,089 crore in FY'23.
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"A significant 21 per cent Y-o-Y revenue growth for FY 23-24, reaching a milestone Rs 1,316 crore. The growth reflects the company's robust business performance and consistent upward trajectory, underscoring its continued market strength and operational health," the statement said.
The company said that its emerging businesses are growing at a rate of 70-100 per cent year-on-year including Shiprocket Cross Border, Checkout, Shiprocket Fulfillment etc.
Shiprocket, MD and CEO, Saahil Goel said that the focus of the company this year has been on scaling the business sustainably and launching new tech solutions for small and medium businesses e-commerce units.
"Our strategic partnerships, including those with ONDC, DGFT and India Post have been crucial in providing greater access and support to merchants across Bharat.
With over 1.5 lakh active sellers and an annualized gross merchandise value of over USD 3 billion (about Rs 25,000 crore) flowing through our platform, we are proud to power 5 per cent of India's eCommerce ecosystem," Goel said.