Shiprocket, a logistics aggregator platform that helps small and medium sized retailers connect with relevant delivery providers, has announced a fresh $13Mn fundraise. The round was led by Tribe Capital, a Silicon Valley-based investment firm founded by Social Capital alumnus, along with Innoven Capital and existing investor Bertelsmann India Investments.
Founded in 2017 and already profitable, Shiprocket runs a comprehensive suite of logistics related platforms, to make it easier for individual retailers of all sizes, to ship products across India. The company provides a mobile app for small sized merchants, while a order management tool along with discounted prices for large volume shippers.
Talking about the company and this fundraise, CEO and co founder Sahil Goel says, “The boom in direct-to-consumer brands and social selling across India has been facilitated by companies like ours who are committed to providing advanced technology and fulfilment solutions to online sellers enabling them to compete with larger brands and marketplaces.”
Considering the times that we live in currently, logistics companies have become the need of the hour, even for essential deliveries. Add to that an already complicated logistics network in India, and digital, tech-enabled solutions such as Shiprocket become even more crucial. According to the domestic rating agency ICRA, Indian logistics sector is expected to grow at a rate 8-10 per cent over the medium term.
There is a lot of money to be made as well. The logistics industry of India was estimated to be around US$ 160 billion in 2018. With implementation of GST the sector is expected to benefit and touch US$ 215 billion over the next two years, as per the Economic Survey 2017-18.
That seems to be showing on the company’s financial performance as well. According to a report in the Economic Times, Shiprocket turned profitable in FY18-19 with an annualised revenue run rate between $25-30 million. The startup processes more than 2 million monthly shipments from about 35,000 sellers to sell directly to their consumers across India.
As part of the fundraising agreement, Arjun Sethi, co-founder of Tribe Capital LLC, will join Shiprocket’s board of directors.