Arjun Sethi, Tribe’s cofounder, stated that the SPV will not only invest in companies but also construct and acquire them in India. The SPV plans to invest $75 million in Shiprocket, where Tribe Capital already has the largest interest. The SPV, founded in Gurugram, is co-owned by Sethi, Shiprocket cofounder Vishesh Khurana, and Raj Snehil Juneja, an investor in Indian businesses.
Tribe Capital, located in Silicon Valley, is increasing its investment in logistics company Shiprocket through a recently created special purpose vehicle (SPV) in India.
Arjun Sethi, Tribe’s cofounder, stated that the SPV will not only invest in companies, but will also grow and acquire them in India, breaking from the traditional methodology of foreign venture capital firms working in the country.
According to ET, the SPV plans to invest $75 million in Shiprocket, where Tribe Capital currently holds the majority share.
Sethi says the transaction will be completed in the following weeks.
The SPV was founded as a Gurugram-based company and is jointly owned by Raj Snehil Juneja, an investor in Indian companies, and Sethi, who is also cofounder of Shiprocket with Vishesh Khurana.
The authorized India asset management business, Tribe Capital India Management Pvt Ltd, is expected to contribute the lion’s share of cash to Shiprocket’s current investment round. This financing endeavor is expected to include both primary and secondary deals, potentially valuing the business at $1.2 billion.
Tribe Capital Management will handle a number of businesses, including the India AIF, Tribe India Venture AIF Fund I. Initially, the India AIF will have an 80% overlap with Tribe Capital’s global fund in terms of limited partners and sponsors. Sethi stated that the AIF will also seek general partners to contribute to and manage the investments.
Last year, Tribe Capital announced plans to launch a $250 million alternate investment fund (AIF) centered on India.
Shiprocket, created in 2017 by Vishesh Khurana, Saahil Goel, Akshay Gulati, and Gautam Kapoor, is a marketplace for third-party logistics providers. It collaborates with 17 courier companies, including Delhivery, FedEx, Aramex, XpressBees, DTDC, and Shadowfax.
Shiprocket has raised more than $270 million in capital to far, with investors including Temasek, Bertelsmann, Moore Strategic Ventures, PayPal, and March Capital.
The company’s operating revenue increased 78% to INR 1,089 crore in FY23, up from INR 611 crore the previous year. However, the net loss increased 3.6 times to INR 341 crore during the fiscal year under review, up from INR 93.1 crore in FY 22.
The firm ascribed the increase in its loss to the acquisition of Omuni for INR 200 crore and rival Pickrr for $200 million.
