Logistics SaaS startup WheelsEye has bounced back in FY22 with almost a two-fold spike in its scale after a flat scale during FY21. Founded by former Shuttl executives Anshul Mimani and Manish Somani, the company’s operating revenue grew 1.98X to Rs 156.93 crore in FY22 from Rs 79.31 crore in FY21.
The Gurugram-based company provides GPS tracking hardware, FASTag, and data analytics solutions to trucking operators and large logistics businesses. Sales of software subscription services accounted for 46.1% of its total operating revenue which grew 95% to Rs 72.31 crore in FY22 from Rs 37.08 crore in FY21, according to its annual financial statements with the Registrar of Companies (RoC).
Collection from Fast tags and GPS-tracking hardware devices increased by 67.6% to Rs 42.19 crore. Income from commission and other operating revenue collectively surged 2.4X to Rs 42.43 crore.
Similar to a major chunk of SaaS companies, WheelsEye’s employee benefit expenses constituted 43.3% of its overall cost which widened 70.2% to Rs 118.6 crore in FY22 from Rs 69.69 crore in FY21. Importantly, the company booked an expense of Rs 508.53 crore as ESOP which is a non-cash expenditure. Fintrackr has excluded the same while calculating the firm’s total expenses.
The cost of GPS-tracking hardware and Fast tags increased by 23.6% and stood at Rs 30.71 crore in FY22. WheelsEye incurred Rs 2.03 crore and Rs 1.55 crore against legal professional fees and IT cost respectively during FY22. Importantly, it didn’t give any bifurcation of miscellaneous expenses of Rs 108.08 crore which might be spent on commission, brokerage, R&D, and others.
Despite close to two-fold growth in its scale, WheelsEye’s losses grew 13% to Rs 111.99 crore in FY22 from Rs 99.15 crore in FY21. Its ROCE and EBITDA margin improved to -75.99% and -67.49% respectively during FY22. On a unit level, it spent Rs 1.75 to earn a single rupee in the fiscal year ending March 2022.
To anyone traveling on India’s highways the WheelsEye logo does make its appearance every now and then, on the back of trucks, small or large. That compliments the claim of being India’s largest trucking service convincingly. While nothing like the impressive branding Delhivery trucks carry for instance, the firm has managed to build distinct revenue streams, with software services actually going under 50% of total revenues in FY22. That speaks of a level of pragmatism and adaptability to grab new opportunities in the firm, something that should hold it in good stead in the vast yet complex logistics market with its myriad ownership segments, regulations and more. Improving margins indicate WheelsEye is on the right path, although whether that leads to a road to profitability as early as FY23 remains to be seen.