Press "Enter" to skip to content

As Development Jumps To 30%, Action Is Moving To E-Commerce Logistics Segment

E-commerce logistics companies such as Ecom Express and Delhivery saw an income development of almost 40% during FY17 on an average. This development was mainly boosted by shipments of B2C e-commerce even as the online retail segment increased by almost 30–35%, pointing a move in share of the market in the general logistics sector.

Some of the firms have also been capable of shrinking their losses due to scale-utilization and asset.

Delhivery clocked a roughly 44% increment in overall incomes to Rs 751 Crore at the time of FY17 in comparison to Rs 523 Crore of previous year, according to its regulatory filings with the MCA (Ministry of Corporate Affairs). The Tiger Global-supported company’s losses fell to Rs 249 Crore in FY17 from Rs 317 Crore by 21% at the time of FY16 even as total expenditures increased almost from Rs 840 Crore from the previous year to Rs 1,000 Crore in FY17, as per the statement of the company for earnings.

Ecom Express clocked an analogous development in income that increased from Rs 359 Crore the year ago to Rs 493 Crore by 37% in FY17. The firm also removed its losses from Rs 96 Crore to Rs 72 Crore by 24%, as per MCA filings received from Tofler, the data-tracking platform.

Being a relatively tiny company, XpressBees clocked an astonishing increment with 122% increment in income to Rs 185 Crore in FY17 from Rs 83 Crore in FY16. Amitava Saha, the CEO of the firm, claimed that the factor for this development has been increment of their pin codes to 3,500 in FY17 from 2,000 earlier that resulted in this elevated growth in income.

“I believe revenues of Delhivery increased due to the fact that they focused their B2B business at the time of FY17,” claimed an investor who traces the logistics sector, requesting for secrecy.