Bengaluru-based Startup Shuttl Touches INR 150 Cr In Revenue In FY20 Before Pandemic Halts Operations
Bengaluru-based bus-aggregator startup, Shuttl, has reported a 48% rise in its revenue for the financial year that ended in March 2020, before the company had to halt operations temporarily as the nation entered a covid-induced lockdown, that established the culture of working from home across corporates. The company’s revenue grew from INR 101 Cr in FY2019 to INR 149 Cr in FY2020.
The growth of Shuttl’s revenue was a result of its growing operations, which earned the company INR 142 Cr in FY2020, 45% more as compared to INR 98 Cr in FY2019.
Its expenses, on the other hand, grew by 52% from INR 206 Cr in FY2019 to INR 314 Cr in FY2020. As a result, Shuttl reported a loss of INR 165.5 Cr in FY2020, representing a 56% rise from INR 106 Cr reported in FY2019.
Shuttl is an app-based office shuttle service, which was founded in 2015 by Amit Singh and Deepanshu Malviy. The company operated in six Indian cities — Delhi NCR, Hyderabad, Pune, Kolkata, Mumbai, and Chennai — pre-Covid, however, its operations came to a halt after companies shifted to work-from-home in 2020 amid the pandemic. With India launching the Covid-vaccination drive, many businesses have resumed their operations from offices, allowing Shuttl to resume their services once again. It is important to note that Shuttl has been planning to launch its services in Bangkok.
The company was serving over 60K rides daily by running 1200 buses across 150 routes in the above-mentioned six cities in the pre-Covid times. But with offices resuming to function with a limited workforce due to Covid protocols, the scope of growth for the company remains limited at least in the next few quarters. In this situation, the company is expected to see a massive fall in its operating revenue in FY2021, resulting in reduced revenues overall.
Shuttl has raised $122 Mn to date from investors like Sequoia Capital, Dentsu, Amazon, Lightspeed India Partners, Trifecta Capital, Times Internet, and Hong Kong-based venture capital firm SIG Investments.
A good 59% of Shuttl’s expenses went into supply chain costs in FY2020. The disbursement in this area grew about 60%, from INR 116 Cr in FY2019 to INR 186 Cr in FY2020. Its advertising expenses also grew a substantial 161%, from INR 9.7 Cr to INR 25.3 Cr in the same period.
The expenditure on employee benefits made up for 17% of the company’s total expenses, growing 6% from INR 50 Cr in FY2019 to INR 53 Cr in FY2020. Shuttl also registered a 70% increase, from INR 10 Cr to INR 17 Cr, in its outsourced employee cost.
The startup had announced salary cuts and layoffs at the end of March 2020, which came into effect from the first month of FY21 (April 2020). It also laid off about 40 employees from its workforce to boost its cash runway and survive the pandemic, even if its operations were halted. Shuttl’s cofounders, Singh and Malviya, had opted for a 50% pay cut, whereas the company forgoes bonuses for FY21.
Overall, these layoffs and salary deductions would result in reduced expenses for Shuttl in FY2021. Besides this, Shuttl will also witness a significant fall in its supply cost as well as promotional expenses in the upcoming financial statement.