Source: The Economic Times
Shiprocket, a rapidly growing logistics technology venture funded by Zomato and Temasek, has taken another major step in its pathway towards a public offering. The company has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), in accordance with the regulator’s pre-filing route. This represents Shiprocket’s once-and-for-all step to launch an Initial Public Offering (IPO).
The IPO details
According to media reports, Shiprocket’s IPO is expected to raise between Rs 2,000 and Rs 2,500 crores. Shiprocket will raise about Rs 1,000 to Rs 1,200 crore via fresh issue of shares. The rest of the shares will be sold by existing investors on an offer for sale basis. The company has hired Axis Capital, Kotak Mahindra Capital, JM Financial and Bank of America to manage the IPO process. Shiprocket has taken the option to confidentiality by SEBI. If a company goes this route, they can keep certain business details private until the IPO closes. Several famous startups have gone this route, including Boat, PhysicsWallah, and Swiggy.
About Shiprocket
Shiprocket was established in 2012 and provides logistics solutions from end-to-end: primarily focused on direct-to-consumer (D2C) brands and small sellers throughout India. The company has provided support to over 100,000 merchants, with major traction from Tier-II and Tier-III cities. These cities now make up over half of Shiprocket’s merchants, highlighting the company’s significant footprint outside of major metropolitan enclaves.
In 2023-24 (FY24), Shiprocket’s operating revenue was Rs 1,316 crore, up 21% relative to the previous year. Like many other businesses in rapid expansion mode, Shiprocket had also grown its net losses, which expanded to Rs 595 crore, partially due to purchasing other companies including RocketBox, Omuni, and Pickrr. Even with the large net losses, Shiprocket reached cash-flow positive in FY25 and continued to expand at an estimated 20–25%
Strategic Focus
Shiprocket is honing in on three main areas of growth: digital payments, cross-border shipping and quick commerce (which encompasses fast local deliveries). In the quick commerce vertical, Shiprocket is working with logistics platforms such as Porter, Borzo, and Shadowfax to provide access for medium and small businesses to hyperlocal delivery. The initiative has allowed Shiprocket to partner with companies like Zepto and Swiggy Instamart for stock replenishment in dark stores.
Funding and Valuation
Shiprocket raised Rs 219 crore in its last funding round that took place last year at a $1.2 Billion dollar valuation. New investors in the round included Koch Group, MUFG Bank, Tribe Capital, and Susquehanna, meanwhile existing investors continued to participate in this round including Temasek, Bertelsmann, PayPal, and Info Edge Ventures.
With its upcoming IPO, Shiprocket hopes to entrench its position as a leading player in logistics and e-commerce in India, while providing itself access to capital markets in order to facilitate its next phase of growth.
