Shiprocket Reports 21% Revenue Growth In Fiscal 2024, Loss Widens
While losses for FY24 have widened to Rs 595 crore, Shiprocket expects to clock profit in fiscal 2025.
E-commerce enablement platform Shiprocket registered a 21% year-on-year revenue growth at Rs 1,316 crore for fiscal 2024. While losses for the fiscal widened to Rs 595 crore from Rs 340 crore in the previous fiscal. The company aims to start clocking profits in the current financial year.
Shiprocket said that it has reduced its cash Ebitda burn by 50% from Rs 191 crore in fiscal 2023 to Rs 100 crore in fiscal 2024. The company also stated that the first two quarters of the financial year, which ends in September 2024, showed a decrease of 50%.
The company’s revenue growth had zoomed 80% from Rs 611 crore to Rs 1,089 crore last fiscal. “Last year we had a revenue contribution from our mergers and acquisitions, because the year for us was about integrating them, which didn't happen this year. It was a clean organic year for us. Also, last fiscal was generally sluggish for e-commerce because of post-Covid normalisation; these were broadly the reasons,” said Chief Executive Officer and Co-Founder Saahil Goel.
Moreover, the non-cash one-time restructuring and integration-related accounting impact of Rs 244 crore connected to acquired entities contributed to the loss, he said.
The company reported ESOP issuances worth Rs 192 crore during the year, along with investments in emerging businesses, overheads, and capability-building.
Shiprocket's emerging businesses are growing at a rate of 70-100% YoY, including Shiprocket cross-border, checkout, shiprocket fulfilment, and others, it said.
“We look at the business from a core shipping business lens, which is our flagship business. We also continuously invest in newer areas of the business, which are the future growth engines. Our emerging business also contributes nearly a fifth to the revenue. About 20% of the contribution has been built and will increase, which will give us higher growth in the coming years,” Goel said in the note.
The company made five acquisitions in 2022: Wigzo, Glaucus, Arvind Internet's Omuni, Rocketbox, and Pickrr. Shiprocket turned unicorn in August 2022, after a $33.5 million fundraise at a valuation of over $1 billion.
Moving forward, Shiprocket’s strategic focus will be on expanding key emerging areas, including Cross-Border Enablement for Brands, Shiprocket Quick, Shiprocket Checkout, and Shiprocket Capital, to continue driving innovation and growth across its platform, the company said.
