Tribe Capital is currently in discussions to lead a funding round ranging from $75 million to $100 million for Shiprocket, a logistics aggregator. This significant financial consideration is noteworthy in the current landscape where many Indian startups face challenges in securing capital.
The ongoing funding discussions may see changes in terms, according to two anonymous sources familiar with the matter. Both Tribe Capital and Shiprocket declined to provide comments.
Shiprocket, headquartered in New Delhi, operates an e-commerce logistics and shipping software solution for courier services. Their platform utilizes a machine learning-based data engine to recommend suitable courier services for businesses, handling tasks such as choosing a courier company, printing shipping labels, and tracking orders from a unified panel. This streamlined approach allows businesses to efficiently manage their shipping and returns.
Shiprocket, backed by investors like Temasek and Zomato, aims to become IPO-ready within the next 12 to 18 months, as indicated in a company note reviewed by TechCrunch. As of September, its annualized run rate exceeded $165 million.
The company collaborates with 250,000 merchants in India, facilitating up to 200 million transactions annually, according to information on its website. Shiprocket plans to extend financing options to merchants and introduce buy now, pay later offerings for consumers. The internal note projects a revenue run rate of around $500 million by the end of 2025. Additionally, the company aims to broaden its cross-border shipping and checkout services, according to an insider.
Tribe Capital, an existing supporter of Shiprocket, is keen on expanding its focus in India. Earlier this year, Tribe Capital’s leader, Arjun Sethi, expressed the firm’s intention to raise a $250 million India-focused fund in an interview with the Economic Times.
In the global startup ecosystem, Indian startups faced a slowdown in investment, securing approximately $7 billion in capital in 2023, a significant decrease from $25 billion in 2022 and $37 billion in 2021, according to market intelligence from Tracxn. Late-stage funding experienced the sharpest decline, dropping over 73% year over year. Furthermore, the number of mega-rounds exceeding $100 million totaled only 17 for the year, reflecting a 69% decrease compared to 2021.
