Shiprocket cuts cash burn by about 50% in FY24, on track to be profitable by FY25
Shiprocket is relying on the strength of its emerging and acquired businesses along with strategic partnerships as it looks at profitability.
Ecommerce enablement platform on Wednesday said it reduced its cash EBITDA burn by about 50% to Rs 100 crore in FY24 from Rs 191 crore a year ago.
The logistics unicorn also said it managed to hit profitability for the first two quarters for the current financial year, and it remains on track to achieve full profitability by FY 2025.
The company posted 21% YoY revenue growth in the financial year ending March 2024 to Rs 1,316 crore. Its emerging businesses witnessed a strong 70%-100% growth in the last 3-4 years, with their contribution rising to nearly a fifth of the company's revenue in FY24. Its emerging businesses include Shiprocket Cross Border, Checkout, and Shiprocket Fulfillment, among others.
The acquisition and integration of Pickrr’s Domestic Shipping has strengthened the company’s core operations. Pickrr's founding team remains actively engaged in scaling and integrating the business, Shiprocket said in a statement.
It concluded the integration and restructuring of its acquired businesses, ensuring a smooth transition that strengthened its core operations, noted Saahil Goel, MD and CEO of Shiprocket.
Its bottomline of Rs 595 crore in loss after tax was hurt by one-time restructuring and integration costs of Rs 244 crore, along with significant ESOPs costs worth Rs 192 crore during the year as well as several investments in its emerging business.
Shiprocket claims to have over 1.5 lakh active sellers and an annualized GMV of $3 billion+ flowing through its platform. The company expects to continue to focus on expanding key emerging areas, including Cross-Border Enablement for Brands, Shiprocket Quick, Shiprocket Checkout, and Shiprocket Capital.
Edited by Jyoti Narayan