In a significant move within the challenging fundraising landscape for Indian startups, Tribe Capital is reportedly in advanced discussions to spearhead a funding round ranging from $75 million to $100 million for the New Delhi-based logistics aggregator, Shiprocket. This potential investment comes at a crucial time when many startups in India are grappling with difficulties in securing capital amid a broader funding slowdown.
While the funding discussions are ongoing, insiders caution that the terms of the deal may undergo adjustments. The sources providing this information have requested anonymity due to the confidential nature of the deliberations, and both Tribe Capital and Shiprocket have declined to comment on the matter.
Shiprocket, headquartered in New Delhi, specializes in e-commerce logistics and offers a comprehensive shipping software solution for courier services. The platform employs a machine learning-based data engine that recommends suitable courier services for businesses, streamlining processes such as choosing a courier company, printing shipping labels, and tracking orders through a unified panel. This approach allows businesses to efficiently manage their shipping and returns.
With notable backers including Temasek and Zomato, Shiprocket has expressed its ambition to go public within the next 12 to 18 months, as indicated in a company note reviewed by TechCrunch. The startup boasts an annualized run rate exceeding $165 million as of September, reflecting its robust performance in the market.
According to Shiprocket’s website, the platform collaborates with 250,000 merchants in India, facilitating up to 200 million transactions annually. The company has outlined plans to broaden its financial offerings to merchants and introduce buy now, pay later options for consumers. Shiprocket aims to elevate its revenue run rate to approximately $500 million by the close of 2025, as per internal projections. Additionally, the startup is keen on expanding its cross-border shipping services and enhancing its checkout offerings.
Tribe Capital, already an investor in Shiprocket, is looking to reinforce its focus on the Indian market. Arjun Sethi, the leader of Tribe Capital, revealed earlier this year that the firm is actively seeking to raise a $250 million India-focused fund.
The fundraising climate for Indian startups has witnessed a notable downturn, aligning with global trends. In 2023, Indian startups secured approximately $7 billion in capital, a significant drop from $25 billion in 2022 and $37 billion in 2021, according to market intelligence platform Tracxn. This decline is the most pronounced in seven years, with late-stage funding experiencing a steep drop of over 73% year over year. Furthermore, the number of mega-rounds exceeding $100 million totaled just 17 for the year, marking a 69% decrease compared to 2021.
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