How Unicommerce Plans To Drive Growth In Coming Quarters

How Unicommerce Plans To Drive Growth In Coming Quarters

SUMMARY

Unicommerce’s growth in the coming quarters will be fuelled by ecommerce expansion, an uptick in the total addressable market, client acquisition and an extended product suite

The ecommerce SaaS major completed the first tranche of the acquisition of Shipway on December 17, with plans to buy the remaining stake through a merger of stock swap soon

Unicommerce’s consolidated net profit zoomed over 62% year-on-year to INR 6.29 Cr in Q3 FY25

Ecommerce-focussed SaaS major Unicommerce is banking on a four-pronged strategy to drive growth in the coming quarters, with a focus on improving profitability.

Unicommerce’s next phase of growth will be driven by ecommerce expansion in the country, an uptick in the total addressable market from complementary offerings, client acquisition, and an extended product suite, managing director and CEO Kapil Makhija said in a post-earnings call.

“The long-term outlook for the Indian ecommerce market is promising, driven by increasing digital adoption and evolving consumer preferences. We remain confident in Unicommerce’s growth trajectory. We will continue to enhance our offerings further as per the needs of the ecommerce ecosystem,” he said during the call.

Unicommerce reported a 62.1% jump in its consolidated net profit to INR 6.29 Cr in the December quarter of the fiscal year 2024-25 from INR 3.88 Cr in the year-ago quarter. Revenue from contract with customers zoomed 26% to INR 32.74 Cr from INR 25.96 Cr in Q3 FY24. 

According to Makhija, the total addressable market for Unicommerce’s core products is nearly $260 Mn, with an additional $420 Mn for its complementary offerings. With the addition of Shipway, the total addressable market for courier aggregation is roughly $470 Mn, bringing the combined total addressable market for all Unicommerce products to about $1.15 Bn. 

Unicommerce offers three products — Convertway, an AI-enabled marketing automation platform; Uniware, an order processing platform; and Shipway, a full-stack logistics management platform. 

Uniware, its flagship product, will remain the biggest contributor to Unicommerce’s bottom line in near future while the company focuses on scaling newer businesses — Shipway and Convertway, according to Makhija.

Together, these three businesses cater to more than 7,000 clients, including Lenskart, boAt, and Mamaearth, among others. Unicommerce foresees significant cross-selling opportunities for its services, given the current overlap of customers between these products is quite small — less than 5%.

Notably, Unicommerce acquired a nearly 43% stake in ecommerce shipping solutions provider Shipway for INR 68.4 Cr last November. 

During the post-earnings call, Unicommerce CFO Anurag Mittal said the company completed the first tranche of the acquisition on December 17, 2024, with plans to acquire the remaining stake through a merger of share swap soon. 

“As part of the strategic consolidation efforts, UniShip will be merged with Shipway Shipping Automation Solutions,” he said. Launched in 2023, UniShip is a logistics tracking and returns management platform.

Shares of Unicommerce ended Monday’s trading session 4.30% lower at INR 152.30 apiece on the BSE. 

 

 

 

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