It aims to significantly enhance the retention of employees by elevating employee engagement-Shiprocket, the leading logistics and supply chain enablement services firm, in a boost move for ensuring its high workforce retainability, said that there is a new ESOP added this fiscal worth almost $19 million or almost Rs 134 crore for its new addition of more ESOP.
PC: The Financial Express
Another 31,011 ESOPs have been granted and admitted to the existing scheme at Shiprocket through special resolutions, which raises the aggregate total ESOP pool of Shiprocket to stand at 174,440 options as part of the comprehensive plan toward talent attraction and retention for this competitive industry.
The total value of the ESOP plan for Shiprocket now stands at about Rs 757 crore (about $90 million), according to a filing with the Registrar of Companies, RoC.
The company even got shareholder approval for renaming the ESOP trust from “Bigfoot Employee ESOP Trust” to now “Shiprocket Employee ESOP Trust,” hence rebranding the earlier one and redefining allegiance of employees to that particular brand, with the ESOP increase.
To date, the company has raised more than $300 million in funding. The company most recently took valuation in the amount of about $1.23 billion raised through funding where it acquired a $11 million investment from McKinsey. Within its funding portfolio, the company has quite diverse investors. At 25.1%, the biggest is with Bertelsmann Nederland B.V. The second largest in the stake has been 15.8% through Tribe Capital.
Other notable investors are Zomato, Temasek, Lightrock, and PayPal, that believe in the business model and growth prospects of Shiprocket.
Shiprocket’s revenue for fiscal year 2024 closing March went up by 21% YoY and stood at Rs 1,316 crore. Nevertheless, during the same period, the company has incurred a loss of Rs 595 crore. Here, Shiprocket managed to deal with all that normal growing pains that arise in a scaling business about logistics as it continued its growth process and added new revenue streams.
Shiprocket operates in a competitive environment and competes with the rivals that include Unicommerce that recently acquired Shipway and other similar firms, for example, Shipyari. The company has to better its technology and service to stay in the market. This is considered critical in improving the operational efficiencies as well as customer satisfaction.
Reports, Shiprocket is to raise an amount of around Rs 2,000-2,500 cr between the first public offering in 2025. It will be a step that is to provide the right kind of capital for the company further drive the growth trajectory and increase the market reach.
The expansion of the ESOP program indicates that Shiprocket is aware of the importance of aligning the interests of employees with those of the company and its shareholders. An employee stake in the success of the company can help Shiprocket attain a culture of ownership and commitment to facilitate innovation and growth in this ever-changing landscape of logistics.
Basically, what this new move by Shiprocket, which brings an ESOP of $19 million into the organization, represents is strategic: it pumps up employee motivation and retention at work, hence keeping them competitive to success. As the company gears up for an IPO and further expansion of their operations, commitment to workforce is emphasized while at the same time ensuring objective development in the long run.
