WheelsEye, which is a logistics SaaS start-up company, is working on a technology platform for trucking operators and providing technology to the logistics sector in India, especially for the sector that is unorganised and needs immediate attention. Former shuttle executives Manish Somani and Anshul Mimani started the company in the year 2017, which has witnessed flat growth in the financial year March 2021. The operations revenue of the company has declined by 2% in FY21 to Rs 82.4 crore from Rs 84 crore, which the company earned in FY20.
Based out of Gurugram, the company is a provider of GPS tracking services, data analytics solutions and FASTag to large businesses and the operators of trucks. The company claims to have more than 700,000 verified operators on the company platform, serving across 600 districts in the country. The company records the largest income, which is 44% of the total annual revenue, with its data analytics SaaS services. From this vertical, the revenue of the company grew by 160% in FY21 to Rs 35.9 crore from Rs 13.81 crore in FY20.
There has been stiff competition in the industry for WheelsEye such as logistics companies like Rivigo and Blackbuck.
Other than the SaaS technology platform, WheelsEye also offers various solutions for the logistics sector and large businesses, but the shift by the company from this vertical to focus more on providing technology solutions to the existing customers and trucking companies primarily, has affected the revenue growth. The revenue dropped by 97.3% in FY21 to Rs 1.2 crore from Rs 43.46 crore in the financial year 2020, the reason also being high competition in the segment.
FASTag and GPS tracking equipment are two key sources and second-largest drivers of revenue for the company, accounting for 30.6%. the segment has recorded a mere 1.8% growth of Rs 25.18 crore in FY21 from Rs 24.74 crore in FY20. Booking commissions and FASTags registered a growth of Rs 20.1 crore in FY21 from only Rs 2 crore in FY20, making it the highest growth of 905.5%.
The largest cost centre of the company is the employee benefit expenditure, which has increased with the increased employee base accounting for 37.4% of annual expenses of the company. The payments of this department grew from Rs 26.53 crore to Rs 69.7 crore from FY20 to FY21. Outsourcing charges make up 20% of the annual cost. The lockdown resulted in the dropping of GPS. FASTag installation and operation costs by 49% to Rs 32.43 crore. Hardware procurement costs also dropped by 16.4% to Rs 24.6 crore, as the company used the existing inventories. The company has spent on research and development operations, which amounted to Rs 6.66 crore, which encouraged the annual cost of the company from Rs 191.6 crore in FY20 to Rs 186.6 crore in FY21.
The company is a provider of GPS tracking services, data analytics solutions and FASTag to large businesses and the operators of trucks.
There has been stiff competition in the industry for WheelsEye such as logistics companies like Rivigo and Blackbuck, which are established technology companies in the industry. With all these ups and downs on the accounts, the company faces many challenges to boost growth and also churn profits. With large fleet operators in the industry increasingly grabbing the first place, the size of operators in the market is much smaller including single truck owners, due to which it becomes important for the company to serve them in low-cost ways as well.