Porter, an on-demand intra-city logistics company, has continued its impressive growth in FY24, with revenue surging 56% to over Rs 2,700 crore. During the same period, the company significantly reduced its losses by 45%, bringing them down to below Rs 100 crore. Porter’s operational revenue increased by 55.9% to Rs 2,733.8 crore for the fiscal year ending March 2024, doubling its revenue from Rs 1,753.8 crore in FY23.
Porter operates a comprehensive logistics platform aimed at optimizing last-mile delivery operations for businesses. The company derived 99% of its total operating revenue from goods transportation services, with the remainder coming from platform fees and other related activities. Additionally, Porter gained Rs 32.64 crore from interest and financial assets, taking its overall revenue to Rs 2,766 crore in FY24.
Fleet operator costs, which include vehicle-related and delivery personnel expenses, accounted for 82.8% of the total expenses and rose by 50% to Rs 2,369 crore in FY24. Employee benefits expenses also increased by 24.3% to Rs 237.36 crore, which included Rs 6.69 crore in employee stock compensation expenses. Other major expenses included advertising, promotions, information technology, and legal and professional fees, contributing to a total expenditure of Rs 2,862 crore in FY24, up from Rs 1,964 crore in the previous fiscal year.
Despite these rising costs, Porter managed to reduce its losses by 45% to Rs 95.7 crore, compared to Rs 174.6 crore in FY23. The company’s operating cash outflows improved by 48.5% to Rs 96.7 crore during the year, with outstanding losses at Rs 771.5 crore as of FY24. Porter’s EBITDA margin also improved by 638 basis points, reaching -2.89% in FY24, with the company spending Rs 1.05 to generate a rupee of operating revenue.
Porter has successfully scaled its operations without raising external funds in FY24 and FY23, with its last funding round—a $100 million Series E led by Tiger Global and Vitruvian Partners—occurring in October 2021. Although Porter reportedly reached unicorn status in an internal round that included secondary components, the Bengaluru-based company has not officially announced this achievement.
Porter’s path towards profitability is a positive sign for current and prospective investors, especially in a highly competitive market. The decline of competitors like Dunzo has allowed Porter to seamlessly capture additional market share. With investor fatigue in the logistics sector limiting new competition, Porter and other major players are well-positioned to focus on improving margins and becoming stable profit generators, appealing to public market investors.