Bengaluru-based on-demand logistics platform Porter is aiming to achieve profitability by the end of FY25 while sustaining a 50% year-on-year revenue growth trajectory. “If we continue the trajectory we’ve maintained over the past few years, Porter may turn profitable by the end of this fiscal,” said Shruti Ranjan Satapathy, chief product and technology officer. “That said, it’s not just about profitability; we want to maintain growth momentum while ensuring reasonable margins,” Satapathy added.
The company which reported a 56% increase in revenue to Rs 2,733.8 crore in FY24, building on a doubling of revenue to Rs 1,753.8 crore in FY23, also managed to narrow losses by 45% to Rs 95.7 crore, during the fiscal, from Rs 174.6 crore in FY23.
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Achieving this balance between growth and profitability hinges on Porter’s focus on operational efficiency and cost discipline, according to Mohit Rathi, vice president of customer growth and engagement. “We’ve taken a hard look at what marketing channels are not working or where we can redeploy money to deliver better return on investment. While we continue to do some bit of performance marketing, we have significantly reduced our spending on that front,” Rathi added.
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SMEs form the backbone of Porter’s business, contributing 85% of its revenue, with the remaining 10-15% coming from newer initiatives like Packers and Movers, Porter for Enterprises, and expansion into new geographies. Currently operating in 22 cities, up from 7-8 cities a few years ago, Porter has been adding 3-4 cities annually. “We expect to continue adding cities at this rate for the coming few years,” Rathi said.
Quick commerce and e-commerce players form a minor part of Porter’s revenue, contributing less than 1%, who rely on the company for specific needs like movement between larger mother warehouses and smaller dark stores, and merchandise transfers. “Enterprise businesses, which include these players, are only about 5% of our business totally.
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