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E-commerce enabler platform Shiprocket reported a 21 per cent year-on-year (YoY) operating revenue increase to ₹1,316 crore in FY24, driven by the consolidation of acquisitions that enhanced the performance of its core business.
The company also announced that it achieved profitability in the first two quarters of FY 2024, ending September, positioning it well ahead of its goal to reach full profitability by FY 2025.
Shiprocket acquired the domestic shipping arm of Pickrr, along with fully acquiring Pocketbox, Omuni, Wigzo, and Glaucus.
Notably, the shipping platform reduced its cash burn by 50 per cent, bringing it down from ₹191 crore in FY23 to ₹100 crore in FY24 by focusing on growing the business without increasing fixed costs.
“Since our business primarily has headquarters cost (HQ) below the contribution margin, there aren’t many other cost drivers. It’s designed to be cost-efficient. In FY 22 and 23, we made acquisitions, and in FY 24, we consolidated, eliminating redundant expenses like hosting and office space.”
“By integrating our teams and technology onto a single platform, we have been able to scale and offer more products to the same merchants,” stated Saahil Goel, MD and CEO of Shiprocket to businessline.
The integration of Pickrr’s Domestic Shipping further strengthened Shiprocket’s core operations, according to the company. “The Pickrr founding team remains actively engaged, playing a pivotal role in guiding the company’s strategic direction and growth,” it added.
Emerging businesses driving growth
The core business of Shiprocket contributed 80-85 percent of its total revenue. The core business includes shipping and ancillary services.
The emerging segment, in its nascent stages, has shown growth, remarked Goel. The emerging businesses are higher-growth ventures that have grown significantly, by nearly 70-100 percent, he said.
Shiprocket, founded in 2017 operates in nearly 24,000 serviceable pin codes within India, and covers over 19000 unique locations and over 220 countries and territories across the world. The company has over 1.5 lakh active sellers and an annualized GMV of $3 billion+ flowing through our platform.
- Also read: Skye Air intensifies quick-commerce partnerships, targets expansion to six cities within two years
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