Shiprocket has become the 106th unicorn of India

Shiprocket has become the 106th unicorn of India

Shiprocket, the Zomato-backed SaaS-based logistics startup, has become the latest to join the country’s unicorn club. Shiprocket has raised $33.5 million in a new Series E2  funding round led by Shiprocket India.

 According to the startup’s regulatory filing, Singapore sovereign wealth fund Temasek, Bertelsmann, Moore Strategic Ventures, PayPal, March Capital and Huddle were also there in the funding round.

 In what looks like a completely new round of bridge funding, Shiprocket has allocated a total of 59,793 Series E2 Compulsory Convertible Preferred Shares (CCPS) at a huge amount of INR 43,394.13 per share.

 While Shiprocket also gave a huge amount of  78 Cr INR, Temasek also gave 75 Cr INR in the logistics startup.  Bertelsmann and Moore Strategic Ventures pumped  38.9 Cr INR each. To raise this round, Shiprocket’s single promoters diluted about 2.7% of the capital.

 By Inc42’s calculations, Shiprocket was valued at $1.2 billion in its last round of funding, joining Delhivery, Xpressbees and Ninthuck in the list of logistics startups that turned unicorns.

 The investment round comes nearly 10 months after Shiprocket raised $185 million led by food delivery giant Zomato and Shiprocket India. The latest funding round saw participation from Moore Strategic Ventures, March Capital, 9 Unicorns and InfoEdge Ventures, and Shiprocket valued at around $950 million.

 Shiprocket is valued at around $1.2 billion with a new funding round. The new funds will help Shiprocket expand its operating system by creating new software and smart products while enhancing execution and same-day delivery, the carrier said in a statement.  The Series E2  round also included existing investors Bertelsmann India Investments, March Capital, Moore Strategic Ventures, PayPal Ventures and Huddle.

Saahil Goel, CEO and co-founder of ShiprocketDirect, a direct trade retailer in India, said: “This investment will help us accelerate our roadmap and offer a world-class e-commerce experience to all.”. 66 million consumers per year and is growing 3 times every year.  In July Shiprocket acquired the technology business of multi-channel trading company Arvind Internet Limited called ‘Omni’ for Rs 200  in equity and cash transactions.

The agreement will leverage the technology and resources of both companies to start using fast, efficient and hassle-free delivery from the nearest store/depot in a broader segment that enables commerce. D2C, Shiprocket said in a statement. In June, Shiprocket acquired a huge risk in Pickrr, an e-commerce software as a service (SaaS) platform for D2C brands and SME e-commerce merchants for approximately $200 million. dollars (nearly Rs 1,560).

As reported by Entrackr, Shiprocket India and MacRitchie Investments led the round. Other investors include Bertelsmann Nederland BV, Moore Strategic, Paypal Inc and MCP3 SPV. The company raised new capital at a valuation of $1.23 billion.  In December, it was valued at around $930 million when Shiprocket raised $185 million in a Series E round co-led by Zomato, Temasek and Light rock India.

Since then, it has acquired  Omni, Rocketbox and Pickrr from Arvind Internet Ltd. ASK Private Wealth Hurun India Future Unicorn Index 2022  recently ranked Ship-rocket as the most popular Gazelle. 

Shiprocket: Introduction

• Shiprocket was founded in 2017 and now serves more than 66 million customers annually, and triples in size annually.
• Omni, a technology company owned by Arvind Internet Limited, was acquired by Shiprocket last month for Rs 200 crore in stock and cash.
• Existing investors Huddle, March Capital, Moore Strategic Ventures, PayPal Ventures and Bertelsmann India Investments also participated in the Series E2 fundraising.
• For over $200 million in June, Shiprocket acquired a majority stake in Pickrr, an e-commerce software as a service (SaaS) platform for D2C brands and SMB e-commerce ( almost Rs 1,560 crore).

Shiprocket Fundraising Campaign: Highlights

• According to a statement from Shiprocket, the additional funding will allow it to further develop its same-day fulfilment and delivery capabilities while expanding the functionality of the operating system.
• The Shiprocket agreement will utilize the technology and resources of both companies to enable fast, efficient and hassle-free delivery from the nearest store or warehouse in a larger segment that enables D2C commerce.

 With more than 17 courier partners on board, the company enables trans-Indian and international deliveries. Its shipping solutions are available for more than 29,000 PINs in India and 220 destinations globally. Earlier, the company said it currently works with more than 2.5 lakh merchants, who generate more than $2.5 billion in total merchandise volume annually.

 The platform offers packages to more than 70 million consumers per year and increases transactions 2.5-3 times per year.  The logistics support platform is the first to become a unicorn after credit solutions startup OneCard and blockchain platform 5ire entered the elite group over the weekend of July 15.

 A unicorn is a startup. private equity is valued at $1 billion or more.

 As part of this transaction, Shiprocket, operated by Bigfoot Retail Solution Pvt. Ltd is issuing 59,793 Series E2 Compulsory Convertible Preferred Shares with a par value of Rs 355 and a premium per share of Rs 43,039.13. The Board of Directors of the company approved the issuance of shares at the meeting on  August 10, 2022.

Temasek and Shiprocket placed Rs 78  and Rs 75 crore respectively. The remainder of the capital was contributed by Bertelsmann Nederland, March Venture Capital Management Services LLC, Moore Strategic Ventures LLC, Huddle Collective and Paypal Inc. An email was sent to Shiprocket, and Temasek and Shiprocket India did not immediately respond.

 The latest fundraiser was first reported by news site Entrackr.

 Before this funding round, Shiprocket signed a definitive agreement last December to raise $185 million in a Series E round co-led by Zomato Ltd, Temasek Holdings and Shiprocket India. As part of Zomato’s startup portfolio, Shiprocket is one of the investments the company makes. As part of its acquisition of Blinkit (formerly Grofers) this year, Zomato also invested in Blinkit last year. Other investments by startup  Zomato include hyper-local discovery platform Magicpin and fitness major Curefit.

 Founded in 2017 by Gautam Kapoor, Saahil Goel and Vishesh Khurana, Shiprocket provides logistics services for small and medium-sized businesses (SMEs), and direct-to-consumer (D2C) brands and people sell social commerce in many categories. The startup claims that it serves over 29,000 PINs in India and 220 other countries.

 In a recent June interaction with VCCircle, Goel, without disclosing the latest financial figures, said Shiprocket’s core business was profitable. In the fiscal year 2020-2021, the company’s revenue stood at Rs 364 crore, up from Rs 161 crore in the previous financial year, according to data and information platform from VCCircle, VCCEdge.

 The company has yet to release financial figures for the 2021-22 financial year. In July, Goel also said the company isn’t looking for an initial public offering (IPO) right now but wants to get it ready, without specifying a date.

 Over the past few months, Shiprocket has been actively seeking inorganic growth through acquisitions. Last month, Shiprocket announced the acquisition of Arvind Ltd’s omnichannel technology business, Omni, for an estimated price of around Rs 200.

 Omni is Shiprocket’s fifth acquisition. Before that, the startup announced in June that it was acquiring Pickrr for around $200 million in a  cash and stock deal.

 In early 2022, the company acquired Glaucus Supply Chain Solutions, Rocketbox and Wigzo Technologies.

 While working with VCCircle in June, Goel said the company will continue to look for inorganic growth opportunities in the post-purchase area including customer service, shipping, packaging, returns and refunds. . He added that the company has enough cash reserves without specifying the amount, and most of them are reserved for acquisitions.

 It has also sought to dispel the perception that it seeks to deal with major players in the logistics sector such as Delhivery and Xpressbees, who are also its partners.

 Shiprocket also entered the international market last year with a foray into Saudi Arabia to become a global company in 10 years.

edited and proofread by nikita sharma