Logistics aggregator Shiprocket eyes $200 million from Temasek & Others
Logistics aggregator Shiprocket is in talks with Singapore's national wealth fund Temasek to lead a new round of fundraising for $200 million. They claimed that in addition to existing investors, other cross-border investors could join the investment round, which is projected to value the Delhi-based company at around $800 million.
“Temasek is finalising the round,” one of the sources said. “The company plans to use new capital for growth and also acquire smaller startups in the areas such as automation and others.”
Company founder Saahil Goel, however, said the funding information was “not accurate”.
“We haven’t finalised our round construct and haven’t signed any terms yet,” he said in an emailed statement to ET. “The final set of investors, fundraise amount and valuation are all in the works right now. The fundraise is aimed at helping us grow our fulfilment business as well as grow inorganically via tech acquisitions.”
Shiprocket gathers delivery requests from direct-to-consumer (D2C) brands, micro entrepreneurs, and small businesses, and transfers them to logistics companies like Delhivery and Ecom Express. Aside from shipping, it also provides its technological stack to retailers, allowing them to combine their shopping websites with platforms such as Shopify. Shiprocket has raised around $94 million to date.
PayPal Ventures, PayPal's venture capital arm, and current investor Bertelsmann India Investments co-led a $41 million series D1 funding round in July. Goel later informed that the financing might be expanded with other investors.
Shiprocket claims an annual revenue run rate of $80-90 million, with 130,000-140,000 active merchants on its site each year. It has been concentrating on the burgeoning direct-to-consumer (D2C) brand area, which presently sees roughly 2-3 million daily shipments.
Shiprocket is witnessing greater demand from small businesses and direct-to-consumer firms that are increasingly moving online as the pandemic has caused a surge in online shopping across the country.
Around 60,000 active merchants were on the site in July, with around 10,000 of them being D2C companies. To reach consumers faster, Shiprocket is increasingly delivering one-day and two-day delivery to these brands.
“Temasek is finalising the round,” one of the sources said. “The company plans to use new capital for growth and also acquire smaller startups in the areas such as automation and others.”
Company founder Saahil Goel, however, said the funding information was “not accurate”.
“We haven’t finalised our round construct and haven’t signed any terms yet,” he said in an emailed statement to ET. “The final set of investors, fundraise amount and valuation are all in the works right now. The fundraise is aimed at helping us grow our fulfilment business as well as grow inorganically via tech acquisitions.”
Shiprocket gathers delivery requests from direct-to-consumer (D2C) brands, micro entrepreneurs, and small businesses, and transfers them to logistics companies like Delhivery and Ecom Express. Aside from shipping, it also provides its technological stack to retailers, allowing them to combine their shopping websites with platforms such as Shopify. Shiprocket has raised around $94 million to date.
PayPal Ventures, PayPal's venture capital arm, and current investor Bertelsmann India Investments co-led a $41 million series D1 funding round in July. Goel later informed that the financing might be expanded with other investors.
Shiprocket claims an annual revenue run rate of $80-90 million, with 130,000-140,000 active merchants on its site each year. It has been concentrating on the burgeoning direct-to-consumer (D2C) brand area, which presently sees roughly 2-3 million daily shipments.
Shiprocket is witnessing greater demand from small businesses and direct-to-consumer firms that are increasingly moving online as the pandemic has caused a surge in online shopping across the country.
Around 60,000 active merchants were on the site in July, with around 10,000 of them being D2C companies. To reach consumers faster, Shiprocket is increasingly delivering one-day and two-day delivery to these brands.
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