E-commerce-focussed logistics company Ecom Express reported a loss of R104 crore for the fiscal year ended March 31, 2016, according to a company’s filing with the registrar of companies. The losses doubled from R49.4 crore in FY15.
Ecom Express reported total revenue of R359 crore which rose more than two-fold from R151.25 crore in FY15. Unlike traditional courier companies like Blue Dart and DTDC, Ecom Express is focussed only on e-commerce delivery and distribution in the country.
It handles 200,000 shipments daily across 11,000 pin codes in the country. The company also expanded its warehousing space to 400,000 square feet.
From total expenses of R463 crore, the company spend R201 crore on cost of services and R178 crore on employee benefit expenses during FY16, according to company’s profit and loss statement.
Former employees of Blue Dart – TA Krishnan, Sanjeev Saxena, K. Satyanarayana and Manju Dhawan founded the company in 2012. Directors of the company, Krishnan and Satyanarayana were paid Rs 90 lakh and Rs 67 lakh respectively, in remuneration and Saxena and Dhawan were also paid Rs 67 lakh each in FY16. Saxena and Dhawan hold 10.8% and 14.37% equity in the company, respectively, as on March 31, 2016.
Ecom Express had raised $133 million from Warburg Pincus in June 2015 which was one of the largest funding deals in the e-commerce segment. Recently in an interview to FE Krishnan said, “We plan to invest in technology, deploy advanced parcel sorting system, strengthen network reliability and infrastructure and finally build the second level management team.”
During the Diwali festive season, e-commerce companies Flipkart, Snapdeal, Amazon employed additional staff of about 10,000 people each to meet the festive rush.
Ecom Express hired about 8,000 people and paid an average remuneration of R18,000 per month to each of the employees. According to a study by Novonous, market for third-party logistics company is expected to grow to $302 billion by 2020, a CAGR of 12.17%,
driven by growth in e-commerce, retail, FMCG and manufacturing.