Pickrr, the logistics startup acquired by Shiprocket, experienced a significant setback in the financial year ended March 31, 2023, as its standalone net loss more than doubled to INR 105 Cr. The company, founded by Ankit Kaushik, Rhitiman Majumder, and Gaurav Mangla, specializes in plug-and-play logistics solutions for ecommerce marketplaces and D2C brands, offering services such as sales return management, D2C marketplace fulfillment, and B2B distribution.
While Pickrr’s operating revenue exhibited a commendable rise of over 50%, reaching INR 306 Cr in FY23 from INR 204.2 Cr in the previous fiscal year, the net loss saw a substantial increase of 105% from INR 52.2 Cr in FY22. This financial performance fell short of the ambitious revenue target set by Mangla, who aimed for about $120 Mn (approximately INR 998 Cr) in FY23 after Shiprocket’s acquisition of Pickrr.
Expenditure Breakdown:
- Courier & Logistics Expenses: Pickrr allocated INR 259 Cr, constituting 62.8% of its total expenditure, for courier and logistics. This marked a 49% increase from the INR 173.2 Cr spent in FY22.
- Employee Benefit Expenses: The startup’s employee costs rose to INR 88 Cr, witnessing an 85% increase from the previous fiscal year’s INR 47.6 Cr.
Post-Acquisition Developments: After being acquired by Shiprocket in June 2022 in a deal valued at approximately $200 Mn, Pickrr continued its operations with cofounders Ankit Kaushik and Gaurav Mangla. However, Rhitiman Majumder exited the startup in August 2023. Shiprocket, backed by Zomato, has been actively involved in acquiring companies such as Glaucus Supply Chain, Wigzo, Rocketbox, and Logibricks.
In FY23, Shiprocket faced its own financial challenges, with a net loss surpassing INR 341 Cr, more than three times the INR 93.1 Cr reported in the previous fiscal year. Despite operating revenue rising to INR 1,089 Cr from INR 611 Cr in FY22, the company aims to achieve profitability at the group level within the next 12 to 24 months.
Looking Ahead: The financial performance of Pickrr and Shiprocket in FY23 underscores the challenges faced by logistics and ecommerce-related startups in achieving profitability amid competitive market dynamics and rising operational costs.
