Bengaluru-based B2B logistics company Spoton is witnessing recoveries in business volumes as the company reported 25 per cent growth in the month of September as compared with the same period last year.

Nearly 95 per cent of Spoton’s business comes from the express cargo segment (transport through road); less than one per cent of its business from the air-cargo services vertical; while another 5 per cent comes from its 3PL business.

3PL or third-party logistics providers are those who specialise in integrated operations of warehousing and transportation services that can be scaled up.

Abhik Mitra, MD and CEO, Spoton Logistics, said that recoveries are being witnessed across most sectors that include automobiles, e-commerce and so on. Apparel and lifestyle continue to be on the slower side.

About 60 per cent of revenues come from clients across sectors such as automobile and pharmaceuticals. E-commerce accounts for under 10 per cent of its revenue.

Banking on the recoveries in logistics volumes, the company is hopeful of reporting a 10 per cent growth in turnover for the quarter ending September, over the same period last year. However, for the full year, turnover is expected to remain flat, over last fiscal, at ₹700 crore.

“Nearly three months of the fiscal, from April to June, had to be written off and there were hardly any volumes then. Now if you consider the target, it is actually business for nine-odd months. I would say the flat turnover is less of worry; considering that volume recoveries across most categories are happening,” he told BusinessLine .

Sectors like engineering, automobiles, pharmaceuticals and others have been witnessing recoveries post June.

Scaling up

Mitra added that the 3PL business is witnessing good growth of over 50 per cent, on an annual basis.

The company is expanding its logistics network by scaling up hubs in Nagpur (Maharashtra), Bengaluru (Karnataka), Ambala (Punjab) and Chennai (Tamil Nadu). Similar scale-up is being looked at for hubs in the Delhi-NCR and Kolkata regions.

“The hubs will also support future growth in the regions,” he said.

Incidentally, Spoton still does not find it viable to be in the B2C segment. It is still not a very profitable segment as compared to express cargo, that is of relatively higher value and better margins.

The company has over 5,000 clients including Reliance, Bosch and e-commerce companies like Flipkart and Amazon. It was acquired by a Samara Capital-led consortium of investors from PE firm, India Equity Partners.