Bengaluru-based logistics and supply chain enabler, Shiprocket, is looking to raise ₹219 crore (approximately $26 million) as part of an extension to its ongoing Series E funding round. The investment is largely led by KDT Ventures, with notable participation from MUFG Bank, Tribe Capital, and SAI Global. This capital infusion is likely to further enhance Shiprocket’s growth trajectory, adding muscle to its capabilities in the competitive logistics market.
PC: The Economic Times
The board of Shiprocket has approved the issuance of 50,461 Series E3 Compulsorily Convertible Preference Shares (CCPS) at an issue price of ₹43,394 each to raise the targeted amount. The lead investor is KDT Ventures with a major chunk of investment of ₹124.5 crore, followed by MUFG Bank with investment of ₹49.8 crore and Tribe Capital with an investment of ₹6.23 crore.
Other investors, such as Huddle Collective and SAI Global India, are also participating, adding ₹34.7 lakh and ₹38 crore to the round.
This funding round seems to be part of a larger capital-raising effort, with additional investments expected in the near future. After this allotment, Shiprocket’s valuation is estimated to be around ₹10,195 crore (approximately $1.21 billion), making it a unicorn in the logistics sector.
Founded by Saahil Goel, Gautam Kapoor, and Vishesh Khurana, the Shiprocket logistics platform offers an easy-to-use online solution for businesses to process shipments through courier integration, real-time tracking, and automated solutions. The firm has raised over $320 million to date, including $11 million of the latest funding led by McKinsey.
The logistics sector is in a transformative phase, influenced by the growth of e-commerce and the need for efficient supply chain solutions. Shiprocket’s innovative approach caters to these demands and allows businesses to optimize their logistics operations effectively. Not only does the company’s platform enhance shipping efficiency but also improves customer satisfaction through reliable tracking and delivery services.
In the fiscal year ending March 2024, Shiprocket reported a 21% year-on-year rise in revenue to ₹1,316 crore, even though it registered losses of ₹595 crore for the same period. It operates in a competitive landscape from other players in the space, such as Unicommerce, which has recently acquired Shipway, among many emerging companies like Shipyard. All of this points to the continued pressure on Shiprocket to innovate and invest if it’s going to continue to remain the market leader.
Notably, the investor base of Shiprocket includes prominent names such as Bertelsmann Nederland B.V., Zomato, Temasek, LightRock, and PayPal, thereby reflecting strong confidence in the company’s business model and growth potential.
As Shiprocket gears up for this new funding round, it will likely focus on scaling its operations, enhancing technology, and expanding its service offerings. With a robust strategy and significant backing from esteemed investors, Shiprocket is well-positioned to leverage the growing demand for logistics solutions in India and beyond.
In short, Shiprocket is raising a new funding of $26 million to meet the challenges of a promising logistics sector. Shiprocket has strong foundations and a good strategic investment and, thus, is well-set for a long way up with continuing growth and driving innovation and efficiency in logistics and supply chain management.
