Shiprocket's Strategic Moves Amid Losses: A Journey to Profitability

Shiprocket reported a wider loss of Rs 595 crore in FY2024, mainly due to restructuring costs, ESOPs, and investments. Despite this, the company reduced cash burn by nearly half and achieved 21% revenue growth. It aims for full profitability by FY2025, with emerging businesses growing rapidly.

Logistics aggregator Shiprocket announced a significant increase in its financial year 2024 losses to Rs 595 crore, as the company faced one-time restructuring costs, substantial employee stock ownership plan (ESOP) expenses, and investments in new business ventures.

In its financial statement, Shiprocket highlighted that losses had escalated from Rs 340 crore in the 2022-23 fiscal year. Despite the setback, the company revealed a reduction in cash flow burn from Rs 191 crore to Rs 100 crore in FY'24, with an optimistic outlook on achieving full profitability by FY 2025.

Moreover, the company's revenue experienced a 21% increase, achieving Rs 1,316 crore in FY'24 as compared to Rs 1,089 crore the previous year. Emerging sectors within Shiprocket, such as Cross Border and Fulfillment, exhibited substantial growth with a 70-100% year-on-year rate.

(With inputs from agencies.)