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WheelsEye posts Rs 208 Cr revenue in FY23; losses stand at Rs 96 Cr

Logistics SaaS startup WheelsEye didn’t manage to grow its scale in the last fiscal as it did in FY22.

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Kunal Manchanda & Harsh Upadhyay
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WheelsEye

Logistics SaaS startup WheelsEye didn’t manage to grow its scale in the last fiscal as it did in FY22. The firm’s operating revenue grew over two-fold in FY22 but in the fiscal year ending March 2023, it grew only 32.5%. 

Nevertheless, the company controlled its expenditure and improved its bottom line to some extent.

WheelsEye’s revenue from operations grew to Rs 208 crore in FY23 from Rs 157 crore in FY22, according to its standalone financial statements filed with the Registrar of Companies (RoC).

Financials FY23

Check detailed 3 year financial comparison on thekredible.com

The Gurugram-based company provides GPS tracking hardware, FASTag, and data analytics solutions to trucking operators and large logistics businesses. The sale of subscription services formed 52% of the operating revenue which increased by 51% to Rs 109 crore in FY23.

The rest of the collections came from sale of fast tags, GPS-tracking hardware devices, and commissions. Check TheKredible for the complete revenue breakdown. 

Revenue Breakdown

FY22

Total ₹ 157 Cr

FY23

Total ₹ 208 Cr

    According to the company’s website, its solutions are used by 21 million trucks and has 50,000 plus clients.

    Similar to every other SaaS company, employee benefits formed 54% of the overall expenditure. This cost increased 27.1% to Rs 150 crore in FY23 from Rs 118 crore in FY22. We have excluded the cost of ESOP while calculating the employee benefits for WheelsEye.

    Its procurement of fast tags & GPS-related products, commission, technical services, advertising- promotion, legal, and other operating overheads pushed the total expenditure by 13.8% to Rs 313 crore in FY23.

    Check TheKredible for a detailed expense breakdown.

    Expenses Breakdown

    FY22

    Total ₹ 275 Cr

    FY23

    Total ₹ 313 Cr

    • Procurement of products

    • Employee benefit expense

    • Commission paid to sole selling agents

    • Cost technical services

    • Advertising promotional expenses

    • Others

    The cost-control measures helped WheelsEye reduce its losses by 15% to Rs 96 crore in FY23 from Rs 113 crore in FY22. Its ROCE and EBITDA margin improved to -118% and -60% respectively. On a unit level, it spent Rs 1.50 to earn a rupee in FY23.

    FY22-FY23

    FY22 FY23
    EBITDA Margin -382% -60%
    Expense/₹ of Op Revenue ₹1.75 ₹1.50
    ROCE -428% -118%

    Cost control measures are welcome, as long as they don’t moderate growth to the extent that they have. WheelsEye probably has some way to travel before it hits profitability, but the firm has done well to carve out space in a tough market for its offerings. In a fast growing sector, there remain enough opportunities for it to sustain growth as well as build newer products that will resonate with its users. The question is, does it have the runway to be left standing by the time the market turns? 

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