XpressBees provides supply chain solutions services to many giant e-commerce companies like Myntra, Snapdeal, Meesho, Bigbasket and Netmeds. The services offered by the logistics company include cross-border logistics, B2B/B2C express delivery and other warehousing services. The company became a highlight in the industry in the year 2018 after it was backed by China-based e-commerce company Alibaba, which helped XpressBees to mould the business partnerships with Paytm Mall and BigBasket, which are other investor companies.
According to the claims of the company, more than 3 million shipments are handled per day across 2500 cities that fall under the network of XpressBees. The fundraising helped the company to earn a non-operating income from its financial assets during FY21 which was Rs 15 crore, noticing a boost of 200% as compared to the amount earned in FY20 which was Rs 3.3 crore.
XpressBees provides supply chain solutions services to many giant e-commerce companies like Myntra, Snapdeal, Meesho, Bigbasket and Netmeds.
Logistics and transportation costs are listed at the top as the largest cost centre in the expense sheet accounting for 74.7% of the total annual expenditure of XpressBees. With an increase in the orders, the mentioned costs grew by 24.4% in FY21 from FY20, amounting to be Rs 810.7 crore from Rs 651.7 crore. The second-largest expense of the company is employee benefits marking 11% of the annual expenditure, which grew 23.4% from Rs 97 crore paid in FY20 to Rs 119.7 crore in FY21.
During the COVID lockdown, the supply chain industry was forced to adapt to the situation and faced many challenges during the pandemic in the last financial year. This helped as an opportunity for the start-up companies to provide third-party logistics solutions to new markets and emerging D2C brands, last-mile deliveries and several other services.
The rent & utility costs and warehousing operations of the company grew by 14.2% to Rs 65.3 crore from Rs 57.2 crore during FY21 as compared to FY20. The expenditure of XpressBees on legal and professional fees also inflated to Rs 16 crore in FY21, which is around 700%. Rs 10.6 crore as the server hosting charges, the annual costs of the company were pushed from Rs 865 crore in FY20 to Rs 1,085.3 crore in FY21.
The company became a highlight in the industry in the year 2018 after it was backed by China-based e-commerce company Alibaba.
The annual losses of the company have also been reduced by 36.2% to Rs 65.5 crore in FY21 from Rs 102.7 crore in FY20. In FY22, the factors like competition in the business and increasing fuel prices will challenge the company, but with a strong client base and experience of many years, it can be better than most of the companies in the market.