Bengaluru based LetsTransport’s revenue crosses Rs 400 Cr in FY22, improves unit economics

Letstransport is an intra-state logistics marketplace that operates on an asset-light model, providing intra-city logistics solutions to large enterprises, supply chain companies, and local retailers.

Founded in 2015 by IIT graduates Pushkar Singh, Sudarshan Ravi, and Ankit Parasher, Letstransport aims to address the challenges faced by the logistics industry in India.

The company has registered a 2.3X increase in revenue during the last two fiscal years, crossing Rs 400 crore in FY22 from Rs 175.3 crore in FY20.

Letstransport's platform enables users to book trucks and delivery personnel on-demand, track shipments in real time, and manage logistics operations more efficiently. The company has partnered with over 30,000 truckers and over 500 corporate clients, including Flipkart, Coca-Cola, and Amazon.

Letstransport's annual financial statement, reviewed by Entrackr, revealed that income from logistics services is the only source of revenue for the firm.

During FY22, The Bengaluru-based company earned Rs 3.93 crore from the interest on fixed deposits and miscellaneous non-operating income. However, transportation costs, which include all vehicle-related and delivery personnel costs, accounted for 78.2% of the overall cost. This cost increased by 2X to Rs 375.57 crore in FY22 from Rs 183.87 crore in FY21.

The company's employee benefit expenses grew 22.5% to Rs 55.89 crore in FY22 from Rs 45.64 crore in FY21. It also includes Rs 1.18 crore as ESOP expenses, which were non-cash in nature.

Legal professional charges and website hosting/software license costs were recorded at Rs 3.02 crore and Rs 1.85 crore, respectively, during FY22, increasing LetsTransport's overall cost by 80.3% to Rs 480.36 crore in FY22 from Rs 266.49 crore in FY21.

Despite the rapid growth, LetsTransport managed to control costs and saw its losses increase by only 32% to Rs 73.06 crore in FY22 from Rs 55.28 crore in FY21. The company spent Rs 1.19 to earn a single unit of operating revenue, and its ROCE and EBITDA margin was recorded at -117.33% and -12.36%, respectively, during FY22.

The intra-state/city logistics market remains highly competitive, despite the clear advantages of better control and visibility for logistics firms. Fewer border hassles come with intra-state focus, a significant challenge to manage even today.

LetsTransport has a strong list of clients, but it's a fine line between a competitor and a partner in this crowded market. Making a profit in this business is challenging, even with scale and growth, and pricing or other features may be used to achieve it.

It still needs to be determined what Letstransport can do to make its delivery trips profitable and stand out from the competition.