Shiprocket becomes a unicorn, the first in almost a month

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Logistics platform Shiprocket became the latest entrant in the coveted unicorn club after raising Rs 260 crore (about $33 million) in fresh capital from existing investors Temasek Holdings and Lightrock India, according to filings. before the Ministry of Corporate Affairs (MCA). The round raised the company’s valuation to $1.2 billion.

The logistics enablement platform is the first company to become a unicorn after credit solutions startup OneCard and blockchain platform 5ire reached the elite group during the week ending July 15.

A unicorn is a private startup with a valuation of $1 billion or more.

As part of this transaction, Shiprocket, operated by Bigfoot Retail Solution Pvt. Ltd, is issuing 59,793 Series E2 Mandatory Convertible Preferred Shares with a par value of Rs 355 and a premium of Rs 43,039.13 each. The company’s board of directors approved the issue of shares at a meeting on August 10, 2022.

Temasek and Lightrock contributed Rs 78 crore and Rs 75 crore, respectively. Bertelsmann Nederland, March Venture Capital Management Services LLC, Moore Strategic Ventures LLC Huddle Collective and Paypal Inc contributed the remaining capital.

An email sent to Shiprocket, Temasek and Lightrock India did not get an immediate response.

The latest fundraiser was first reported by the news website. tracker.

Prior to this funding round, Shiprocket had signed a definitive agreement in December last year to raise $185 million as part of its Series E round co-led by Zomato Ltd, Temasek Holdings and Lightrock India. Shiprocket is one of Zomato’s investments in startups. Last year, Zomato also invested in Blinkit (formerly Grofers), which it acquired this year. Other early investments by Zomato include hyperlocal discovery platform magicpin and fitness company Curefit.

Founded in 2017 by Gautam Kapoor, Saahil Goel and Vishesh Khurana, Shiprocket provides logistics services to small and medium-sized businesses (SMBs) and direct-to-consumer (D2C) brands and social commerce sellers in a variety of categories. The startup claims that it serves more than 29,000 PIN codes in India and 220 other countries.

In a recent interaction in June with VCCircleGoel, without disclosing the latest financial data, said Shiprocket’s core business is profitable. In fiscal year 2020-21, the company’s revenue amounted to Rs 364 crore, up from Rs 161 crore in the previous year, according to VCCircle’s data and intelligence platform. VCCEdge. The company has not yet released financial numbers for the 2021-22 fiscal year. In July, Goel also said that the company is not looking for an initial public offering (IPO) now, but wants to be ready for it without specifying a timetable.

For the past few months, Shiprocket has been actively pursuing inorganic growth through acquisitions. Last month, Shiprocket announced the acquisition of Arvind Ltd’s omnichannel technology business, Omuni, for an estimated value of Rs 200 crore.

Omuni was Shiprocket’s fifth acquisition. Prior to this, the startup announced in June the acquisition of Pickrr for around $200 million in a combination of cash and stock.

In the interaction with VCCircle In June, Goel had said the company will continue to look for inorganic growth opportunities in the post-purchase category that includes customer services, shipping, packaging, returns and refunds. He added that the company has sufficient cash reserves without specifying a number and that most of them are reserved for acquisitions.

It had also tried to dismiss the perception that it is looking to take on the big players in the logistics space such as Delhivery and Xpressbees, which are also its partners.

Shiprocket also entered the international market last year with its entry into Saudi Arabia with the goal of becoming a global company within 10 years.

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