Shiprocket, an Indian logistics and shipping software startup, is currently in funding talks with venture capital firm Tribe Capital. According to an anonymous source familiar with the matter cited in a recent TechCrunch report, Tribe Capital is deliberating leading a $75-100 million investment into Shiprocket.
The funding talks are said to be ongoing, and the final terms may change, two people close to the discussions stated under the condition of anonymity due to the private nature of the talks. Both Tribe Capital and Shiprocket declined to comment when asked about the funding rumors.
New Delhi-based Shiprocket operates an e-commerce-focused logistics and shipping software solution targeted at courier services. Its platform utilizes a machine learning-powered data engine to recommend optimal couriers for businesses and handle tasks like printing shipping labels and tracking orders through a centralized interface. This enables companies to efficiently manage shipping and returns.
Shiprocket’s growing list of backers
Shiprocket already counts prominent investors like Temasek and Indian food delivery service Zomato among its backers. According to an internal company document reviewed by TechCrunch, Shiprocket is aiming to become IPO-ready within the next 12-18 months. As of September 2022, its annualized revenue run rate exceeded $165 million.
The company currently works with over 250,000 merchants across India who process around 200 million transactions annually through the platform. Shiprocket is planning to expand its financial offerings for merchants, including services like financing options and buy now, pay later for consumers.
The internal document projects Shiprocket’s revenue run rate to reach around $500 million by the end of 2025. Another anonymous source revealed plans to grow Shiprocket’s cross-border shipping capabilities and checkout offerings as well.
As an existing investor, Tribe Capital seems intent on increasing its India investments. In an interview earlier this year, Tribe Capital’s leader Arjun Sethi told Economic Times that the firm seeks to raise a new $250 million India-focused fund.
The talks come during a funding slowdown across Indian startups. 2023 has seen just $7 billion invested into Indian startups year-to-date according to Tracxn, an over 70% year-over-year decline from 2022 levels. Late-stage mega-rounds above $100 million are down almost 70% compared to last year.
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