IBEF: May 12, 2020
Shiprocket, the tech-enabled logistics aggregator, has raised US$ 13 million in its Series C round of funding led by Silicon Valley-based Tribe Capital LLC, Innoven Capital and existing investor Bertelsmann India Investments.
This latest investment brings Shiprocket’s total funding to US$ 26 million, according to a company statement.
The company plans to utilise this investment to enhance Shiprocket’s product development roadmap which consist of hiring top talent across the data science and engineering domains. The funds will also support the company’s international expansions. Under the agreement, Arjun Sethi from Tribe Capital LLC will join Shiprocket’s board of directors.
Mr Saahil Goel, CEO and Co-founder, Shiprocket said that this additional capital will allow the start-up to accelerate its strategic goals and product development endeavors by hiring top talent in key areas.
“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 fulfillment solutions to online sellers enabling them to compete with larger brands and marketplaces" said Mr Goel said.
The company was launched by Bigfoot Retail Solutions in 2017 and turned profitable in FY19 with an annualized revenue run rate in US$ 25-30 million range. According to the company it processes more than 2 million monthly shipments, enabling more than 35,000 entities sell directly to their consumers across India.
It has over 17 logistics providers partners. Shiprocket’s tech-enabled logistics platform connects merchants, consumers and supply chain partners across 26000 pin codes across India and 220 plus countries and territories globally.
Earlier, the logistics start-up has raised US$ 13 million in funding from existing investors Bertelsmann India Investments, Nirvana Venture Partners, Beenext and 500 Startups who continue to back Shiprocket. The latest round gives nearly 30X returns in 5 years for Shiprocket’s angel investors who exited in this round.
“We invested in Shiprocket because they empower the small to medium businesses that truly represent the heart and soul of any emerging economy," Mr Arjun Sethi, co-founder, Tribe Capital, said, speaking on the investment.
Shiprocket has allowed the SMEs, which lack capital finance and credit, infrastructure, technology, and marketing strategies, grow at a time of emerging competition enabled by mobile internet and corporations, he added.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.