Logistics SaaS startup WheelsEye has reported an impressive growth rate in the fiscal year ending March 2022. The Gurugram-based company, founded by former Shuttl executives Anshul Mimani and Manish Somani, offers GPS tracking hardware, FASTag, and data analytics solutions to trucking operators and large logistics businesses.
WheelsEye’s operating revenue almost doubled from the previous year, reaching Rs 156.93 crore. Sales of software subscription services accounted for 46.1% of its total operating revenue, while income from commission and other operating revenue surged 2.4X to Rs 42.43 crore. The company also saw a 67.6% increase in collection from Fast tags and GPS-tracking hardware devices, which brought in Rs 42.19 crore.
However, WheelsEye also faced a 13% increase in losses, reaching Rs 111.99 crore in FY22. Its ROCE and EBITDA margin improved, indicating that the company is making strides in the right direction. On a unit level, it spent Rs 1.75 to earn a single rupee in the fiscal year ending March 2022.
Despite facing challenges, WheelsEye’s success can be attributed to its ability to adapt to the needs of the logistics market. With a pragmatic approach to business, its branding may not be as impressive as that of larger companies like Delhivery. Still, its distinct revenue streams and focus on software services showcase its adaptability. WheelsEye’s growth in other areas, such as GPS tracking hardware and Fast tags, demonstrates its willingness to capitalize on new opportunities.
As the Indian logistics industry rapidly evolves and is expected to reach a market size of $215 billion by 2022, WheelsEye has significant opportunities to expand its services and increase its customer base. However, the industry is also highly competitive, and WheelsEye will need to continue to innovate and adapt to stay ahead of the competition.
To better understand the challenges and opportunities facing WheelsEye, let’s take a closer look at its strengths, weaknesses, opportunities, and threats through a SWOT analysis.
Strong brand recognition and presence in the Indian logistics industry
Diversified revenue streams, including software subscription services and GPS tracking hardware
Focus on innovation and leveraging emerging technologies
High employee benefit expenses, which make up a significant portion of overall costs
High losses and negative ROCE and EBITDA margins
Limited transparency regarding miscellaneous expenses and legal fees
Rapidly growing Indian logistics market with significant potential for expansion
Increasing demand for advanced analytics and insights in the logistics industry
Opportunity to leverage emerging technologies to provide even more value to customers
Highly competitive logistics industry with many established players and new startups entering the market
Ongoing disruptions caused by the COVID-19 pandemic
Fluctuating fuel prices and regulatory changes affecting the logistics industry
In conclusion, WheelsEye has a strong foundation to build upon, with a well-established brand and diversified revenue streams. To continue its growth trajectory and overcome the challenges facing the logistics industry, it will need to continue to innovate and adapt to changing market conditions. By leveraging emerging technologies and providing even more advanced analytics and insights to its customers, WheelsEye can position itself as a leader in the Indian logistics industry.