WheelsEye’s scale doubles in FY22, with losses exceeding Rs 100 crore

• ByStartup Story Team     |    April 11, 2023

WheelsEye, a logistics SaaS startup, rebounded in FY22 with a nearly two-fold increase in scale after a flat scale in FY21. Anshul Mimani and Manish Somani, former Shuttl executives, founded the company, and its operating revenue increased 1.98X to Rs 156.93 crore in FY22 from Rs 79.31 crore in FY21.

The Gurugram-based company offers trucking operators and large logistics companies GPS tracking hardware, FASTag, and data analytics solutions. According to its annual financial statements filed with the Registrar of Companies, sales of software subscription services accounted for 46.1% of its total operating revenue, which increased 95% to Rs 72.31 crore in FY22 from Rs 37.08 crore in FY21 (RoC).

Fast tags and GPS-tracking hardware device revenue increased by 67.6% to Rs 42.19 crore. The income from commissions and other operating revenue increased 2.4X to Rs 42.43 crore.

WheelsEye‘s employee benefit expenses constituted 43.3% of its overall cost, which increased by 70.2% to Rs 118.6 crore in FY22 from Rs 69.69 crore in FY21. Importantly, the company recorded a non-cash expense of Rs 508.53 crore as an ESOP.

In FY22, the cost of GPS-tracking hardware and Fast tags increased by 23.6% to Rs 30.71 crore. During FY22, WheelsEye spent Rs 2.03 crore on legal professional fees and Rs 1.55 crore on IT costs. Importantly, it made no distinction between miscellaneous expenses of Rs 108.08 crore that could be spent on commission, brokerage, R&D, and other items.

Despite nearly doubling in size, WheelsEye’s losses increased 13% to Rs 111.99 crore in FY22 from Rs 99.15 crore in FY21. During FY22, its ROCE and EBITDA margins improved to -75.99% and -67.49%, respectively. In the fiscal year ending March 2022, it spent Rs 1.75 to earn a single rupee.

Anyone travelling on India’s highways will notice the WheelsEye logo on the back of small and large trucks. That supports the company’s claim to be India’s largest trucking service. While not as impressive as the branding on Delhivery trucks, the company has managed to develop distinct revenue streams, with software services accounting for less than half of total revenues in FY22. That indicates a level of pragmatism and adaptability in the firm to seize new opportunities, which should serve it well in the vast yet complex logistics market with its myriad ownership segments, regulations, and more. Improving margins indicate that WheelsEye is on the right track, though whether this will lead to profitability as early as FY23 remains to be seen.

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