Borzo Achieves Profitability in India, Eyes Strategic Fundraising in 2026
Same-day delivery platform Borzo has reached profitability in its Indian operations, marking a significant milestone. The company's Indian arm generates ₹50 crore in annual revenue with a 10% operational profit margin, contributing 65% to global volumes. Borzo has shifted focus to small and medium businesses, with 80-90% of clients now being individuals or small enterprises. Operating in 23 Indian cities, the company projects 25% revenue growth for FY26. While still loss-making globally, Borzo targets global breakeven by 2026 and plans to restart fundraising in the same year, focusing on strategic investors and logistics partners.
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Same-day delivery platform Borzo has marked a significant milestone by achieving profitability in its Indian operations, setting the stage for future growth and strategic investments.
Financial Performance
Borzo's Indian arm has emerged as the company's first profitable geography, demonstrating strong financial metrics:
| Metric | Value |
|---|---|
| Annual Revenue | ₹50.00 crore |
| Operational Profit Margin | 10.00% |
| Contribution to Global Volumes | 65.00% |
Strategic Shift and Future Plans
The company has undergone a strategic transformation, pivoting its focus from large enterprise clients to small and medium businesses. This shift has resulted in a significant change in its client base:
- 80-90% of clientele now comprises individuals or small enterprises
- Operations span across 23 Indian cities
- Mumbai contributes 50% of the business
- Top five metros account for 75-80% of revenues
Looking ahead, Borzo has outlined its growth strategy:
- Projected revenue growth of 25% for FY26
- Focus on pricing adjustments and product initiatives rather than geographic expansion
- Plans to restart fundraising in 2026, targeting strategic investors and logistics partners
Global Outlook
While celebrating its success in India, Borzo acknowledges challenges on the global front:
- The company remains loss-making globally due to R&D costs
- Global breakeven targeted for 2026
Leadership Perspective
Alina Kisina, Borzo's Global CEO, emphasized the company's shift in fundraising strategy. The focus will be on attracting strategic investors and logistics partners, moving away from purely financial investors. This approach aligns with Borzo's goal of leveraging industry expertise and partnerships for sustainable growth.
Market Implications
Borzo's achievement in India underscores the potential of the country's burgeoning delivery market. The company's success in catering to small and medium businesses highlights a growing demand for efficient, same-day delivery services among this segment.
As Borzo continues to refine its business model and expand its profitable operations, it may set a precedent for other players in the logistics and delivery sector, particularly in emerging markets where last-mile delivery remains a challenge and an opportunity.
The company's planned fundraising in 2026, focusing on strategic partnerships, could potentially reshape the competitive landscape in the delivery platform industry, fostering collaborations that extend beyond mere financial investments.
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