A person with knowledge of the matter claims that Tribe Finance is in discussions to spearhead a $75 million to $100 million financing effort for the logistics aggregator Shiprocket. At a time when most Indian enterprises are struggling to raise capital, this funding choice is notable.
The finance negotiations are ongoing, and the terms may change, according to two people who asked to remain anonymous because the conversations are private. Tribe Capital and Shiprocket both declined to comment.
Shiprocket’s E-commerce Logistics Solutions
Shiprocket is a New Delhi-based company that offers logistics software for e-commerce and shipping to courier services. Its platform enables organizations to manage their shipping and returns with ease and success by utilizing a machine learning-based data engine. In order to accomplish this, it prints mailing labels, chooses a courier company, suggests a suitable courier service, and tracks orders from a single panel.
Temasek and Zomato are among Shiprocket’s investors. According to a business note that TechCrunch reviewed, the company hopes to be prepared for an IPO over the next 12 to 18 months. The source claims that by September’s end, its annual run rate had surpassed $165 million.
Shiprocket’s Growth Trajectory and Expansion Plans
On its website, Shiprocket claims to deal with 250,000 Indian retailers who handle up to 200 million transactions a year.
As part of its financing scheme, the company plans to give merchants and customers the opportunity to pay later. By the end of 2025, it wants to raise its revenue runrate to about $500 million, according to the internal document. According to a second person with knowledge of the company’s plans, it also plans to expand the range of its international shipping and checkout services.
Investment Trends in Indian Startups
As a current backer of Shiprocket, Tribe Capital hopes to expand the scope of its operations in India. The company’s CEO, Arjun Sethi, told the Indian daily Economic Times earlier this year that the company is attempting to raise $250 million for an India-focused fund.
Indian entrepreneurs have raised approximately $7 billion in funding in 2023, down from nearly $25 billion in 2022 and $37 billion in 2021, according to market intelligence platform Tracxn. This is consistent with the sluggish pace of global startup ecosystem investment. Actually, it’s the lowest level in the previous seven years.
The largest decline, of over 73% in a single year, occurred in late-stage investments. Furthermore, there were just 17 mega-rounds totaling more than $100 million this year, a 69% decrease from 2021.