Flipkart’s logistics arm Ekart has seen a tenfold increase in revenue and a 50x jump in its customer base over the past four years, and is now both profitable and cash-generating, chief business officer (CBO) Mani Bhushan told FE. He, however, did not disclose further details of the financials.
The growth comes at a time when more e-commerce companies such as Amazon, Flipkart and Meesho are expanding their in-house logistics capabilities — a trend that adds to volume and pricing pressures for traditional third-party logistics (3PL) providers. This trend has already begun a phase of consolidation in the ecosystem, with 3PL player Delhivery acquiring smaller rival Ecom Express to strengthen its position in the market.
Bhushan said Ekart is on track to achieve about 12x Ebitda growth this year compared with last year. Ekart’s service suite spans B2B warehousing, B2C deliveries, full and part truckload services, document logistics, and refurbishment of returned goods, among others.
According to the company’s last known financials, Ekart reported a 5% drop in revenue, while losses widened 5x for FY24 from the previous fiscal. Revenue from operations for Instakart Services, which runs Ekart Logistics, declined to `12,115 crore in FY24 from `12,787 crore in FY23, while net loss jumped to `1,718 crore in FY24 from `324 crore.
Since then, the company has been focusing on expanding its logistics and warehousing offerings, including providing end-to-end supply chain solutions not only for organised retail but also for unorganised sectors, like one of the largest school chains in the country. It has also been focusing on getting more external clients on board.
Ekart, which initially served only Flipkart and Myntra, now counts nearly 1,000 clients, with external business growing sixfold in volume over the past three years. “Many brands that experienced the Flipkart supply chain found it significantly better than their own. That insight led us to expand externally,” Bhushan said.
While Flipkart and Myntra still comprise the majority share of Ekart’s business, the growing share of external clients highlights its shift to becoming an end-to-end logistics player. “The logistics pie is big enough for everyone to grow, but those who deliver reliable service quality, resolve issues promptly and customise solutions will grow faster,” he said.
While pricing pressure will continue to exist across the logistics ecosystem, Bhushan expects Ekart to double revenue year-on-year for the next 3-4 years, but with a focus on profitable growth.