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LoadShare’s scale remains flat in FY23, losses shrink 19%

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Last-mile logistics startup LoadShare seems to have lost momentum during FY23 as the company’s scale barely grew in single digits as compared to over 90% growth in FY22. However, in a pointer perhaps to the firm’s focus during the year, it managed to cut losses by almost 20% during the fiscal year ending March 2023. LoadShare’s revenue from operations grew 6.5% to Rs 384.5 crore during FY23 as compared to Rs 361.2 crore in FY22, as per its consolidated annual financial statement with the Registrar of Companies. Loadshare provides logistics solutions which include 10-minute quick commerce, 30-minute food deliveries, intraday e-commerce deliveries, and regional trucking to warehouses. The majority of its revenue comes from B2B deliveries while the rest from B2C delivery services. The company has not disclosed the breakdown of revenue in FY23. Loadshare claims to process over 350K last-mile deliveries per day and serves over 200 clients across more than 10,000 pin codes. Moving further, delivery charges and related costs formed 71.4% of the total expenditure which went up 12% to Rs 362.2 crore in FY23 from Rs 323.5 crore in the previous financial year(FY22). Spends on employee benefits grew 36.8% to Rs 95.85 crore during the year from Rs 70.08 crore in FY22. This cost also included expenses on the employee stock option scheme and employee stock purchase plan worth Rs 17.35 crore in FY23 and Rs 11.13 crore in FY22. LoadShare further incurred expenses on information technology, legal & professional fees, and other operating and admin expenses which catalyzed its total expenditure to Rs 507.5 crore in FY23. However, compared to the previous fiscal year, the company’s total expenses increased only 1.8% from Rs 498.3 crore in FY22. Head to the startup intelligence platform TheKredible for more details about the company’s financials. Following its prudent spending, LoadShare’s losses shrank 19.4% to Rs 111 crore during FY23 against Rs 137.7 crore in FY22. Additionally, operating cash outflows of the company went up 38.3% to Rs 98.9 crore during the last fiscal year. While its net cash outflows stood at Rs 5.45 crore. Coming to ratios, the EBITDA margin of the firm bettered to -25.79% in FY23 whereas ROCE registered at -75.61%. On a unit level, LoadShare spent Rs 1.32 to earn a rupee of operating revenue during the fiscal year. FY22-FY23 FY22 FY23 EBITDA Margin -35.19% -25.79% Expense/₹ of Op Revenue ₹1.38 ₹1.32 ROCE -54.92% -75.61% As per TheKredible, LoadShare has raised over $60 million to date from the likes of Tiger Global, Beenext, Matrix Partners, and Filter Capital, among others. It last raised $40 million in Series C funding led by Tiger Global in February 2022. The direction of the firm’s business, when taken with the broad direction of the economy, would seem to indicate Fy24 will mark further improvement in metrics for LoadShare. A double digit growth in topline with a further shrinking of losses to bring EBITDA margins to -15% or below would be a welcome target, placing the firm in a position to build strongly for growth again. The broader market seems to be on a strong footing after years of investments by multiple startups and established players, and logistics services firms like LoadShare find a far more receptive market for their services today. Investor interest will narrow down to the larger firms in the business soon, and LoadShare should be well placed to attract further support for its growth ambitions.

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