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eCommerce Shipping Platform Shiprocket raises $41.3 mn led by PayPal Ventures & Others

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Shiprocket, a logistics aggregator, has raised $41.3 million in a funding round led by PayPal Ventures, the company's venture investment arm, and existing investor Bertelsmann India Investments.

The round was also attended by existing investors Info Edge Ventures, March Capital, Tribe Capital, and Innoven Capital.

Shiprocket is India's only automated eCommerce shipping solution. It allows you to select from over 17 courier partners, print shipping labels, track orders from a single panel, and process returns from an integrated dashboard.

Shiprocket, in addition to shipping automation, offers negotiated freight rates with its top-rated shipping partners such as FedEx, Bluedart, Aramex, and Ecom Express.

Strategic partners such as Razorpay and entrepreneurs such as Cred's Kunal Shah and Zomato's Deepinder Goyal have also invested in Shiprocket, according to cofounder and CEO Saahil Goel.

The Delhi-based startup had previously raised approximately $53 million.
Innoven Capital, a venture debt firm, has invested in the latest round of equity capital.

According to Goel, this is the ‘D1' series of funding, which means that it is looking to bring on more investors and that the total funding will eventually be higher.

Shiprocket aggregates demand from direct-to-consumer (D2C) brands, micro entrepreneurs, and local brands and sends it to logistics players such as Delhivery, Ecom Express, and others.

“We have a monthly active merchant base of 60,000 and around 10,000 of them are D2C brands. This is a big area of focus for us as we expand deeper in the country offering 2-day deliveries,” Goel said.

Shiprocket plans to use the funds to expand into the Middle East, beginning with Saudi Arabia.

While Flipkart, Amazon India, and other vertical e-tailers dominate the ecommerce market, a slew of niche D2C brands have emerged in India over the last 12-24 months.

Shiprocket is focusing on this sector because it is estimated to have daily shipments of 2-3 million.

This includes less well-known local brands that are also selling directly to consumers.

According to Goel, the D2C commerce segment accounts for approximately 15% of the overall ecommerce market in India and is expected to grow to 30-35 percent in the next five years.

“Shiprocket has excelled by focusing on building products that solve major logistical problems for businesses as they scale, much like PayPal has supported merchants with payments,” said Marc Donnadieu, director, PayPal Ventures.

Shiprocket, in addition to shipping services, provides its technology stack to retailers in order for them to integrate their shopping websites on platforms such as Shopify.