Porter’s FY22 Loss INR 122 Cr, Revenue Grows 2.6X YoY
- ByStartupStory | March 9, 2023
Porter, a logistics startup backed by Sequoia, has reported a standalone loss of INR 122 Cr in the financial year 2021-22 (FY22), as compared to a net loss of INR 138.8 Cr in FY21. However, these figures cannot be compared directly, as the FY21 loss included the performance of the company’s “non-profitable” institutional business, which has since been sold.
In its regulatory filing with the Ministry of Corporate Affairs for FY22, Porter stated that it had sold its “non-profitable” institutional business to a third party due to the impact of the COVID-19 pandemic on its operations. As a result, the net loss of INR 138.8 Cr reported by the startup in FY21 is not comparable to the standalone loss of INR 122 Cr incurred in FY22. However, Porter’s loss from continuing operations increased in FY22 as compared to the previous fiscal year, with a net loss of INR 63.9 Cr.
In July 2022, Porter announced the divestment of its FMCG modern trade business segment to COGOS Technologies, but it is unclear whether this sale was the “non-profitable business segment” referred to in the FY22 regulatory filing. Porter’s operating revenue surged 2.6 times to INR 847.7 Cr in FY22 from INR 322.2 Cr in the previous fiscal year.
The logistics startup earns revenue primarily by providing goods transportation services and ancillary services. Its total revenue, including interest income, was INR 862 Cr in FY22, up from INR 327.9 Cr in FY21. However, Porter reported a standalone loss of INR 122 Cr in FY22, compared to a net loss of INR 138.8 Cr in the previous fiscal year, which included its discontinued institutional business.
Porter was established in 2014 by Pranav Goel, Vikas Chaudhary, and Uttam Digga, and offers features such as distance-based allocation, GPS tracking, and proactive notifications to empower its driver partners. According to its FY22 filings, the startup expanded its operations to new cities such as Lucknow, Jaipur, Indore, Coimbatore, Chandigarh, and Nagpur, in addition to its existing presence in Bengaluru and Delhi NCR.
Porter’s vehicle running expenses amounted to the highest expenditure during FY22, increasing 2.5 times to INR 786 crore compared to INR 307.6 crore in the previous year. The startup reported total expenses of INR 984 crore in FY22 compared to INR 391.8 crore in the previous year. Advertising and promotional expenses rose almost 3.9 times to INR 27.3 crore in FY22 from INR 7 crore in FY21. The startup’s IT expenses also grew by 72% YoY to INR 16.4 crore in the reporting period. Porter aims to expand its operations globally and plans to launch in the UAE as its first international market through its wholly-owned subsidiary Porter Technologies DMCC.
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