Indian logistics unicorn Xpressbees reported a rise in its consolidated net loss for the fiscal year ending March 31, 2024 (FY24), even as it posted a strong top-line performance. The company, which began as the logistics arm of FirstCry, saw its losses widen by 10.8% year-on-year, reaching ₹199.9 crore, up from ₹180.4 crore in FY23.
Continued Losses Amid Rising Revenues
While Xpressbees has consistently shown growth in revenue—thanks to a booming e-commerce and D2C market in India—the company has not yet achieved profitability. The uptick in losses signals growing operational costs and competitive pressures in the last-mile delivery and logistics sector.
Despite these losses, analysts believe that Xpressbees is well-positioned for long-term growth, especially with its continued investments in warehousing infrastructure, technology integration, and nationwide expansion.
Roots in FirstCry: A Logistics Spin-Off Story
Xpressbees was founded in 2012 by Amitava Saha and Supam Maheshwari. Initially developed to handle the logistics needs of FirstCry, India’s leading online baby care marketplace, the company soon evolved into a full-fledged third-party logistics (3PL) provider.
Over the years, Xpressbees has diversified its offerings, serving a broad range of sectors including e-commerce, pharmaceuticals, retail, and heavy goods transportation. Its extensive delivery network now spans thousands of pin codes across India.
The Growth Story: From Startup to Unicorn
Xpressbees officially entered the unicorn club in 2022 following a $300 million Series F funding round led by Blackstone Growth, TPG Growth, and ChrysCapital. This milestone made it one of India’s few logistics startups to achieve a billion-dollar valuation, signaling investor confidence in the company’s long-term potential.
In FY24, the company’s robust topline growth reflects its deepening market penetration and increased demand for express delivery services, especially from tier-2 and tier-3 cities. However, the expanding operations have also led to rising overheads, thereby widening the net loss.
Challenges in the Indian Logistics Sector
India’s logistics sector is undergoing a major transformation, driven by rapid digital adoption, rising consumer expectations, and the growing need for faster delivery. While these changes offer immense opportunity, they also demand significant capital investment in automation, data analytics, and last-mile delivery optimization.
For companies like Xpressbees, maintaining a balance between scale and cost efficiency remains a key challenge. With competition from players like Delhivery, Ecom Express, and even e-commerce giants like Amazon and Flipkart, the pressure to innovate and deliver high service quality is greater than ever.
What Lies Ahead
Despite the FY24 loss figures, industry experts remain optimistic about Xpressbees’ future. The company’s commitment to building tech-enabled logistics solutions and expanding its service capabilities positions it well in a highly fragmented market.
As Xpressbees continues to grow and optimize, profitability may still be a few years away, but the foundation it is laying today could lead to sustainable success in India’s $250+ billion logistics industry.
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