Bengaluru: New Delhi-based logistics aggregator Shiprocket has raised $27 million in a mix of primary and secondary capital as part of its new funding round led by US-based venture capitalists Tribe Capital and March Capital. DST Global’s Rahul Mehta and Bertelsmann India Investments were the other participants in the funding round.
The round gives an exit to some early investors in the company with returns ranging between six-seven times, the company said. The fundraising also brings the total capital raised by the eight-year-old company to $53 million.
Shiprocket said it will use the funds for development of its product roadmap, including hiring talent across product and engineering roles, and expansion globally.
“With the growth in D2C as a share of overall ecommerce, there is a growing opportunity to enable the full stack of services in the post-purchase journey of the D2C consumer,” said Saahil Goel, cofounder of Shiprocket.
Goel said the company has seen a 2.6-2.7X increase in shipment volumes between January 2020 and January 2021. However, growth in its merchant base has far outstripped this with nearly a 5-6X increase to 100,000 merchants.
“We were able to get a lot more long tail and younger merchants during Covid and our seller acquisition just went through the roof. We found all kinds of merchants getting online, whether it was small shops, D2C brands or larger brands exploring their hands at going D2C,” Goel said.
Shiprocket claims it turned profitable in FY19 and today is at an annualised revenue run rate of $50-60 million. It also says it works with over 100,000 merchants and processes around 4 million shipments monthly, servicing around 26,000 PIN codes in India, apart from having a presence in over 220 other countries.
“E-commerce growth is being led by D2C brands, and Shiprocket’s solutions help enable their growth,” said Rajan Mehra, Partner at March Capital. “Shiprocket has simplified
post-purchase experience for thousands of sellers and millions of buyers, and we are excited by their plans for the future of e-commerce.”
Shiprocket had previously raised $26 million in funding from Bertelsmann India Investments, Nirvana Venture Partners, Beenext and 500 Startups. The company works with brands such as Koovs, Bausch and Lomb, Boat, Mamaearth and XYXX, it said.