Logistics unicorn Xpressbees saw its net loss widen over 6.6X in the financial year ended March 31, 2023 due to higher cash burn. The Supam Maheswari-led startup reported a net loss of INR 180.4 Cr in FY23, an increase of 566% from INR 27.1 Cr in FY22.
Xpressbees, founded in 2015 after being spun off from ecommerce giant FirstCry, delivers goods to over 20,000 pin codes in the country. The startup entered the coveted unicorn club in January 2022 after raising $300 Mn from Blackstone Growth, TPG Growth, among others.
While its loss rose astronomically in FY23, revenue from operations increased a mere 1.3X. Operating revenue grew 33% to INR 2,531.5 Cr during the year under review from INR 1,904.4 Cr in FY22.
The startup offers supply chain solutions, including B2B, B2C express delivery service, cross-border logistics, and warehousing services, to ecommerce players. It earns a majority of its revenue from logistics services. The startup earned INR 2,527 Cr by providing logistics services in FY23 as against INR 1,900 Cr in FY22.
Including other income, total revenue grew 35% to INR 2,604.3 Cr from INR 1,929.9 Cr in FY22.
Zooming Into Xpressbees’ Expenses
Xpressbees’ total expenses increased 42% to INR 2,784.7 Cr in FY23 from INR 1,957.1 Cr in the previous fiscal year.
Courier Charges Continue To Rise: Courier charges continued to be the biggest expense for the logistics startup. It spent INR 1,620.4 Cr on courier charges in FY23, a 6% jump from INR 1,526.8 Cr in the last fiscal year. Courier charges accounted for 58% of the total expenditure.
Employee Costs Surge: Employee benefit expenses increased 74% to INR 322.9 Cr in FY23 from INR 185.7 Cr in FY22. As per LinkedIn, the startup’s total employee count currently stands at 6,211, an increase of 20% from the previous year.
EBITDA margin contracted to -1.7% in FY23 from 2.3% in FY22.
Xpressbees has raised around $540 Mn in multiple funding rounds till date. It counts the likes of Investcorp, ChrysCapital, Norwest Venture Partners, and Alibaba Group among its investors.
The startup claims to handle over 3 Mn shipments on a daily basis, with over 35,000 delivery agents connecting over 2,500 cities. It closely works with startups like Flipkart, Meesho, Tata Cliq, Snapdeal, and Myntra.
In August, Xpressbees acquired New Delhi-based courier firm Trackon in an all-cash transaction to enter the SME courier space.
Last month, the Competition Commission of India (CCI) gave its nod to the Ontario teachers’ fund’s proposal to acquire a minority stake in the logistics giant.
Xpressbees competes against the likes of publicly-listed Delhivery and IPO-bound Ecom Express.
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