Shiprocket had raised $185 million co-led by Zomato, Temasek and LightRock. While the company was valued at over $930 million and missed unicorn status by a short margin, it has scaled at a rapid pace in FY21 with a decent growth in profits after tax (PAT).
Shiprocket’s operating revenue grew 122% to Rs 358.01 crore in FY21 from Rs 161.19 crore in the preceding fiscal year, as per its annual filings. It has earned its entire income through the sale of logistic services. Or more precisely, providing essentially delivery management service to its core user base of SMEs and MSMEs e-commerce sellers.
To achieve this, the firm has tied up with 17 courier partners, including Delhivery and Ecom express. Shiprocket is a SaaS platform that aggregates the likes of the aforementioned logistics firms. Besides offering a single window for merchants to choose their courier partners, the company also provides warehousing facilities.
Keeping in line with the income, the total expenses of the company also grew by 126% to Rs 350.66 crore in FY21 from Rs 155.14 crore in FY20.
With the increase in sales, the category defined as the cost of materials/inventories has emerged as a major cost centre for Shiprocket which constitutes 84% of its total expenditure. This cost grew 134.2% to Rs 294.38 crore in FY21 from Rs 125.67 crore in FY20. These expenditures include the cost of purchase and other charges incurred in bringing the inventories to their present location and condition.
Employee benefit expenditure is the second major expenditure which ballooned 107.3% to Rs. 42.5 crore in FY21 from Rs 20.5 crore in FY20. Legal and professional charges increased 63.8% to Rs 2.62 crore in FY21 as compared to Rs 1.6 crore in the previous financial year.
As sales grew, positive cash flow also followed in Shiprocket’s financial statement for FY21. Cash inflow for the company grew 274.6% to Rs 40.23 crore in FY21 from Rs 10.74 crore in FY20.
Shiprocket has posted a jump of 23.8% in post tax profit to Rs 12.47 crore in FY21 which was Rs 10.07 crore in FY20. On a unit level, the Delhi-based company has spent 0.98 rupee to make a single unit of operating revenue during the last fiscal year.
Shiprocket has demonstrated solid financial performance in FY21 and probably is the only logistics based platform to remain profitable in the e-commerce focused logistics segment in the last two fiscal years (FY20 & FY21). Two key players in the supply chain space Delhivery and Shadowfax remained loss-making entities in FY21. With the recent large funding round, it’s likely to grow its scale substantially in the ongoing fiscal year (FY22).