Unicommerce Dominant Market Leader in a Growing Industry:
Unicommerce stands as India’s largest e-commerce enablement SaaS platform in the transaction processing layer, boasting an impressive annual transaction run rate exceeding 931 million.
Their financial performance reinforces this leadership position, as Unicommerce emerged as the only profitable company among the top 5 players in India during Fiscal 2023. This success can be attributed to their ability to address the complex operational challenges faced by e-commerce businesses, particularly in managing post-purchase activities.
Financial Performance – Fiscal 2023
| Player | Revenue (₹ million) | EBITDA (₹ million) | EBITDA margin (%) | PAT (₹ million) | PAT margin (%) |
| Unicommerce | 900.58 | 65.3 | 7.25 | 64.76 | 7.19 |
| Increff | 852 | -487.79 | -57.25 | -480.45 | -56.39 |
| Vinculum | 481.83 | -253.99 | -52.71 | -289.36 | -60.05 |
| Browntape | 58.44 | -1.06 | -1.81 | -3.73 | -6.39 |
| Easyecom | 67.12 | -55.93 | -83.33 | -44.07 | -65.66 |
As India’s e-commerce market continues to expand rapidly, with a projected CAGR of 23% from 2023 to 2027, reaching an estimated US$140 billion, Unicommerce is well-positioned to capitalize on this growth.
The Company’s revenues are linked to the volume of transactions and the growth in transaction numbers is expected to drive further business growth. Furthermore, sustained investments in existing products, the introduction of new products, and the operational efficiencies provided by scalable models position them well for future growth and profitability, implying that Unicommerce’s growth trajectory aligns with the broader e-commerce industry expansion.
Institutional Investments in Unicommerce
Several well-regarded mutual fund houses have shown confidence in Unicommerce by including it in their portfolios. The current institutional investors include:
- HDFC Mutual Fund – HDFC Technology Fund: 1.38%
- SBI Technology Opportunities Fund: 1.32%
- Nippon Life India Trustee Ltd (Nippon India): 1.27%
- ICICI Prudential Technology Fund: 1.27%
- Kotak Mahindra Trustee Co Ltd – Kotak Technology Fund: 1.27%
Should you Invest In Unicommerce
While Unicommerce’s current valuations may appear elevated, the company’s tech-driven scalability, strong financial health, and high operating leverage make it a compelling investment. With robust revenue potential supported by a clean balance sheet and strong financial ratios, Unicommerce is well-positioned for multi-fold growth. We believe its profitability will accelerate faster than revenue as operating leverage gains traction, making it a solid buy for investors looking to capitalize on India’s expanding e-commerce ecosystem.
| Metric | Value |
| Market Cap | ₹ 2,237 Cr. |
| Current Price | ₹ 218 |
| Stock P/E | 172 |
| ROCE | 27.7 % |
| ROE | 21.6 % |
| PEG Ratio | 4.49 |
| Debt to equity | 0.03 |
| Price to Sales | 21.6 |
Financial Performance
| KPI ( INR Million) | H1 FY25 | H1 FY24 | FY24 | YoY Growth |
| Revenue from contract with Customers | 567.8 | 510.9 | 1035.8 | 11.10% |
| Total Income | 596.2 | 540.5 | 1094.3 | 10.30% |
| Total Expense | 488.6 | 455.8 | 919.6 | 7.20% |
| Gross Margin % | 78.50% | 78.30% | 78.50% | 29 bps |
| Adj. EBITDA | 106.3 | 82.5 | 181.6 | 29.00% |
| Adj. EBITDA Margin % | 18.70% | 16.20% | 17.50% | 259 bps |
| EBITDA | 99.1 | 66 | 144.2 | 59.30% |
| EBITDA Margin % | 17.50% | 12.20% | 13.90% | 528 bps |
| PBT | 107.5 | 84.8 | 174.8 | 26.90% |
| PBT Margin % | 18.90% | 16.60% | 16.90% | 235 bps |
| PAT | 79.9 | 63.7 | 131.2 | 25.40% |
| PAT Margin % | 14.10% | 12.50% | 12.70% | 160 bps |
| Annual Recurring Revenue | 1172.3 | 1037.3 | 1060 | 13.00% |
| Total Enterprise Clients (Nos.) | 904 | 743 | 795 | 21.70% |
| Revenue per Employee | 3.2 | 3.2 | 3.2 | – |
| Number of items processed (Mn) | 445.6 | 349.1 | 772.3 | 27.60% |
| Top 10 Clients Revenue % | 21.20% | 30.40% | 27.40% | (917 bps) |
About The Business
Unicommerce eSolutions Limited is an e-commerce enablement Software-as-a-Service SaaS platform that provides a range of products to automate post-purchase operations for online brands, retailers, sellers, and logistics providers with end-to-end e-commerce operations management.
The company provides a range of SaaS products for e-commerce brands
- Warehouse and Inventory Management System (WMS)
- Multi-Channel Order Management System (OMS)
- Omni-Channel Retail Management System (Omni-RMS)
- Seller Management Panel for Marketplaces (Uniware)
- Post-Order Services for Logistics Tracking and Courier Allocation (UniShip)
- Payment Reconciliation (UniReco)
How Does Unicommerce Generate Revenue?
Unicommerce operates on a transaction-linked revenue model based on the number of orders its clients process through its platform. This model ensures revenue growth as client transaction volumes increase.
Unicommerce categorizes its clients as either Enterprises or SMBs based on the revenue generated through the platform.
- Enterprise clients generate 90% of the company’s revenue, they pay a minimum subscription fee each month with bundled transactions. They are charged additional fees for exceeding the bundled transaction limit.
Here is a list of the Enterprise clients~ Zivame, Fabindia, Pharmeasy, BoAT Lifestyle, Lenskart, Mama Earth, Emmami, Cello
- The remaining 10% of Unicommerce’s revenue comes from SMB clients, who have the option of choosing between two plans: a fixed monthly subscription fee or a per-transaction fee structure.
SMB clients typically represent retailers and emerging businesses with smaller-scale fulfillment operations, generally operating from a single location with fewer users than their enterprise counterparts. Unicommerce views its SMB clients as a potential pipeline for future enterprise clients.
This transaction-based revenue model, coupled with a minimum commitment from enterprise clients and low churn rates, contributes to Unicommerce’s profitability. The company’s Net Revenue Retention (NRR) from enterprise clients consistently exceeds 100%, indicating sustained revenue growth from existing clients.
Reasons Why Enterprise Clients Choose Unicommerce
- Unified E-commerce Management Platform: Unicommerce’s platform integrates multiple e-commerce functions, including inventory management, order processing, warehouse and returns management, shipping, payment reconciliation, and analytics. This all-in-one solution streamlines operations, increases efficiency, and helps reduce costs.
- Enhanced Automation for Operational Efficiency: With automation across order and warehouse management (OMS and WMS), Unicommerce minimizes manual errors and optimizes processing speed, leading to faster and more accurate order fulfillment.
- Scalability and Adaptability for Growing Businesses: Built on a multi-tenant architecture and hosted on AWS, Unicommerce’s platform scales to meet the demands of enterprise clients, offering flexibility through integrations with logistics providers, payment gateways, and ERP systems.
- Focus on Post-Purchase Excellence: Unicommerce prioritizes the post-purchase experience with efficient order fulfillment, returns processing, and customer tracking, helping clients build loyalty and reduce complaints.
- Comprehensive Problem-Solving Tools: The platform addresses key challenges with real-time inventory tracking, automated order routing, seamless returns processing, optimized shipping, accurate payment reconciliation, and insightful data analytics—offering clients full control and visibility over their e-commerce operations.
Unicommerce’s Competitive Moat:
- Extensive Integration Ecosystem: With over 260 integrations spanning marketplaces, webstore platforms, logistics providers, ERPs, and POS systems, Unicommerce offers a comprehensive solution that creates a network effect, making it challenging for competitors to match its reach.
- High Customer Retention through Embedded Operations: Unicommerce’s deep integration with clients’ operations makes switching to other platforms difficult and disruptive. This results in high customer retention and a Net Revenue Retention (NRR) exceeding 100%, as clients continue and often expand their usage of the platform.
- Early Entrant Advantage and Market Leadership: As a pioneer in India’s e-commerce enablement sector, Unicommerce has built strong brand recognition and the largest share by revenue. It is also the only profitable company among top players, providing a competitive edge in client acquisition and market expansion.
- Robust, Proprietary Technology: Unicommerce has developed a scalable, proprietary platform tailored to handle the complexities of Indian e-commerce fulfillment. Its technology is customized for local market needs, regulations, and high order volumes.
- Commitment to Innovation: With a dedicated product and engineering team, Unicommerce continuously updates its platform, adding new features and solutions to meet evolving market demands and stay ahead of competitors.
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