Decoding Shiprocket’s unicorn round

Logistics technology platform Shiprocket turned unicorn this year after raising $33 million as a part of Series E round which saw investments from Zomato, Temasek, and LightRock in the first tranche. While the Delhi-based company did not disclose further details of the financing round, Fintrackr has sifted through its regulatory filings to decode round break-up, cap table, and valuation.

The board at Shiprocket has passed a special resolution to allot 4,23,848 preference shares at an issue price of Rs 34,028.48 per share to raise Rs 1,442 crore ($185 million) at a post-money valuation of $930 million.

Further, the company picked up another $33 million as an extension of the Series E  round led by Temasek and Lightrock and entered into the coveted unicorn club. The company passed a resolution to allot 59,793 preference shares in its ongoing Series E round at an issue price of Rs 43,394.13 per share to raise Rs 260 crore ($33.3 million), according to its filing with the Registrar of Companies (RoC).

Zomato and Teamask invested Rs 450 crore ($57.7 million) and Rs 446 crore ($57.2 million) in Series E while LightRock participated with Rs 315 crore ($40.4 million). Moore Strategic, Info Edge, Bertelsmann Nederland and other individuals collectively pumped in Rs 491 crore ($62.9 million)in Shiprocket’s new round. 

As per Fintrackr’s estimates, the company has been valued at $1.23 billion (post-allotment). Shiprocket has raised around $315 million in funding to date.

Founded by Saahil Goel, Gautam Kapoor, Vishesh Khurana, Shiprocket provides technology solutions to help retailers integrate their shopping websites across enablers such as Shopify, Magenta, and others. According to the company, around 250K sellers use its product and services and it enables the delivery of 70 million shipments each year.

Following the allotment of the Series E round, Bertelsmann emerged as the largest stakeholder in the firm with around 25% while Tribe Capital is the second largest shareholder with 15.8%. Zomato, Temasek, and Lightrock command 5.8%, 5.6%, and 3.9% respectively. The founding team collectively holds 11.8% whereas Shiprocket’s chief business officer Akshay Ghulati, who was elevated to the post of co-founder in 2020, holds around 0.4%.

Shiprocket is a market leader in its space and this was evident from its topline which passed the Rs 600 crore revenue mark with 70.7% year-on-year growth in FY22. The company posted a loss of Rs 93 crore in FY22 as compared to Rs 12.4 crore profit in FY21. It has made three acquisitions including Arvind Internet Limited’s Omuni, Rocketbox, and Pickrr in the last fiscal year.

The company recently tied up with revenue-based financing platform Klub to provide financing solutions for its merchants. It also joined the government's e-commerce platform Open Network for Digital Commerce (ONDC) to enable same-day shipping services.