Domestic courier services Delhivery has registered approximately 44% increase in total revenues to 751 crore in FY17 from Rs 523 crore in the previous year. The losses of Tiger Global backed company dropped from Rs 317 crore during FY16 to Rs 249 crore in FY17 as per the company’s statement of profit and loss. “Due to heavy operational costs and expansion plans being executed, the company has incurred a net loss of Rs 2,49 crore,” the financials stated.
Delhivery was founded in 2011 by Sahil Barua and Mohit Tandon along with three others. It gets its earnings and profits by providing logistics services to ecommerce companies. The company’s founder in an interview said that Delhivery was on track to become profitable by fiscal 2018 and was also planning for a public offering.
Slow growth among smaller ecommerce players may delay Delhivery’s plans to reach profitability, but the company will reach its target, believe experts.
“The company is showing a growth in topline and shrinking losses,” said Harminder Sahni, MD of consulting firm Wazir Advisors. “They may reach profitability in three years instead of one.”