Porter expects biz to grow by 60%, reach operational profit by Dec 2024

Logistics services startup Porter expects its business to grow by 60 per cent to reach about Rs 3,000 crore in revenue in the current financial year on account of expansion in the category, a top company official said.

The Tiger Global and Lightrock ventures-backed startup expects to become operationally profitable by December 2024, Porter Co-Founder and CEO Uttam Digga told PTI.

"We continue to grow at 60-70 per cent year-on-year and I think that is going to continue for the coming one or two years more. This fiscal we expect. This year Porter is hoping to have a 60 per cent growth. The company will be close to making a Rs 3,000 crore revenue," Digga said.

 

Porter at present provides instant delivery of up to 20 kg on two-wheelers, house shifting, mini trucks, three-wheelers etc for delivery of goods and it has recently forayed into courier service.

The company currently operates in about 19 cities.

"There are two levers for us to grow the business. One is category expansion. This gives us more depth in the market where we operate. The second lever of growth is geography expansion, given the localised nature of our business. The more points we serve, the addressable opportunity becomes bigger and larger for us," Digga said.

He said that the courier is a new category of business for Porter and it will be expanded to all cities where the company has operations.

"This would not consume a lot of capital, because we already have a captive audience. We feel that this (courier vertical) has the potential to contribute somewhere around eight to 10 per cent of our total revenue by 2028," Digga said.

He said that the company will target micro, small and medium businesses with the courier service as they don't get pick-up service for goods and other parcels at doorstep which will be a key differentiator in Porter's offering.

Porter has partnered with regional courier services companies to provide the service.

"We feel that a business model like Porter would make sense somewhere in around the top 35-40 cities in India... every year we add somewhere around four or five cities. Currently, we are in 20 cities. So it would take three years to be in 35 cities," Digga said.