Ecom Express, one of India's largest logistics providers catering to the e-commerce industry, has managed to significantly cut its losses for the financial year ended March 2024 according to regulatory filings. The data reveals that Ecom Express narrowed its net loss by 67% to INR 255.8 crores compared to the previous fiscal, demonstrating improved financial performance in the lead up to its planned initial public offering (IPO).
Founded in 2012, Ecom Express operates a nationwide network facilitating deliveries for major online retailers. While revenue saw only marginal growth of 2.15% to INR 2,609 crores, tighter expense management resulted in lower losses. Costs related to delivery services remained the largest expense heading but increased just 0.23% to INR 1,389.9 crores. Meanwhile, outlays on employee salaries witnessed a sharper 9.1% reduction.
The reduced losses come as the company aims to raise up to INR 2,600 crores through an IPO in the coming months. A portion of the funds will be utilized to further build infrastructure and delivery capabilities across the country. Ecom Express competes in a fast growing sector driven by the expansion of e-commerce. With streamlined operations helping to rein in costs, the company appears well positioned to benefit from ongoing industry trends. The IPO will potentially allow Ecom Express to accelerate its growth plans and scale up operations to capture a larger share of India's booming e-commerce logistics market.
