Logistics Firm Shiprocket Secretly Files Draft Papers for IPO with SEBI

Logistics technology firm Shiprocket has reportedly filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), according to a public notice issued on May 21. The Initial Public Offering (IPO) is expected to raise between ₹2,000 crore and ₹2,500 crore.

Purpose of the Issue

The IPO will consist of an offer for sale (OFS) by existing shareholders, along with a possible fresh issue component. Proceeds from the fresh issue, if included, are expected to be used for product development, acquisitions, warehouse expansion, and technology.

The company has appointed Axis Capital, Kotak Mahindra Capital, JM Financial, and BofA Securities as the lead managers for the issue.

Financials

For FY24, Shiprocket reported operating revenue of ₹1,316 crore, up 21% from ₹1,089 crore in FY23. Net loss increased to ₹595 crore in FY24 from ₹341 crore the previous year.

In October 2023, Shiprocket raised ₹90.7 crore (around $11 million) from McKinsey as part of its extended Series E round.

Background 

Founded in January 2012 by Saahil Goel and Gautam Kapoor, Shiprocket serves SMEs, D2C sellers, and social commerce businesses. The platform offers shipping and fulfilment services and integrates with e-commerce platforms like Shopify, Magento, WooCommerce, and Zoho.

It currently supports over 2.5 lakh sellers and handles more than 70 million deliveries per year. Shiprocket claims a GMV of over $2.5 billion annually and is growing transactions at 2.5-3 times year-on-year.

As per the news reports, the company has more than 25 courier partners and operates across 24,000+ Indian pin codes and 220 international destinations. It also has 35+ warehouses across India.

Past Acquisitions 

Shiprocket acquired logistics startup Pickrr in June 2022 for around $200 million. Shiprocket investors include Zomato, Temasek, PayPal, Info Edge Ventures, Bertelsmann India Investments, Lightrock, and March Capital.

In January 2024, the board passed a resolution to convert the company into a public limited entity. The IPO filing follows that move. Email queries to Shiprocket did not receive a response.

Conclusion

The confidential IPO filing places Shiprocket under regulatory review. Disclosures and approvals will follow as per SEBI norms. The outcome will determine the next steps toward listing.

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