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Bengaluru-based logistics and supply chain enabler Shiprocket announced the successful raise of ₹219 crore (approx $26 million) to continue its ongoing Series E round of funding. The freshly injected capital is expected to enhance Shiprocket’s capabilities through technology, expand the range of services, and establish a stronger footing for this logistics firm in its industry.
Funding detail
The latest funding round is led by KDT Ventures, with significant participation from MUFG Bank, Tribe Capital, and SAI Global. 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.
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The investment allocation is as follows:
KDT Ventures: ₹124.5 crore
MUFG Bank: ₹49.8 crore
Tribe Capital: ₹6.23 crore
Huddle Collective: ₹34.7 lakh
SAI Global India: ₹38 crore
This round seems to be part of a series of fundraising, with the company looking to raise further in the immediate future. The post-allotment valuation of Shiprocket is at ₹10,195 crore (around $1.21 billion), which reaffirms the unicorn status in logistics.
Company overview
Shiprocket, founded by Saahil Goel, Gautam Kapoor, and Vishesh Khurana, enables the smooth movement of all kinds of shipments on an online portal through its courier integrations, live tracking and auto-solutions. With various brands it is helping from Koovs to Bausch and Lomb, Boat to Mamaearth and XYXX, among many others for the optimized operations and higher levels of satisfaction to the customer.
Historical Funding and Growth
Before this Series E funding raise, Shiprocket had received more than $320 million in funds raised. Of note is when, in 2020, the company had brought in $13 million through Tribe Capital, Innoven Capital, and Bertelsmann India Investments, at which point it had garnered $26 million in total funds raised.
Shiprocket, in 2021, has managed to raise a whopping $27 million in a Series C round led by Tribe Capital and March Capital.
Shiprocket became a unicorn in 2022, raising Rs 260 crore (around $33 million) from existing investors Temasek Holdings and Lightrock India, pushing the company’s valuation to $1.2 billion.
The company has been reporting steady growth in revenue, which has gone up by 21% on a year-on-year basis to ₹1,316 crore for the fiscal year ending March 2024. The company, however has incurred losses of ₹595 crore for the same period, showing that a great deal of investment was into technology and market expansion.
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Strategic Milestones with the New Funding
The new capital from the extension of Series E will be used strategically for:
- Upgrade Technological Infrastructure: Invest in advanced technologies for better efficiency, user experience, and scalability on the platform.
- Expand Service Offerings: Broaden the array of logistics solutions to satisfy the various needs of different businesses, including international shipping and end-to-end supply chain management.
- Strengthen Market Presence: Expansion within existing markets and explorations of new geographies to exploit emerging business opportunities.
- Operational Efficiency: This should be made efficient by simplifying operations to cut down costs, thus shortening service delivery times, and this improves customers’ satisfaction.
Competition
Shiprocket is currently operating in a very dynamic and competitive world, battling other logistics networks like Unicommerce that has bought Shipway lately, among other new startups such as Shipyard. The continuous capital injection into the sector, therefore, represents a high level of need for innovativeness and efficiency so as to have an edge over competitors
Future Expectations
With the latest funding, Shiprocket is well-positioned to leverage the growing demand for efficient logistics solutions in India and beyond. The company’s focus on technological innovation, coupled with strategic investments, is expected to drive sustained growth and reinforce its leadership in the logistics and supply chain management sector.
Summary:
Shiprocket, a Bengaluru-based logistics and supply chain enabler, has successfully raised ₹219 crore (approximately $26 million) in an extension of its Series E funding round. This infusion will help enhance its technological infrastructure, expand service offerings, and solidify its position as a leader in the logistics sector.