Shiprocket is an e-commerce logistics company based in India that provides end-to-end shipping solutions to small and medium-sized businesses (SMBs). It was founded in 2017 by Saahil Goel and Gautam Kapoor with the goal of making shipping easy and affordable for e-commerce sellers.
Shiprocket’s platform offers a range of features and services, including order management, shipment tracking, automated shipping labels, courier recommendations, and discounted shipping rates. The company has partnered with over 17 logistics providers, including major players like FedEx, Delhivery, Blue Dart, and DHL, to ensure that its customers have access to the most reliable and cost-effective shipping options.
One of the unique aspects of Shiprocket is its focus on empowering SMBs to compete with larger players in the e-commerce space. The platform offers a range of tools and resources to help sellers streamline their operations and grow their businesses. For example, Shiprocket’s “Shiprocket Social” feature allows sellers to easily create and manage their own online stores on social media platforms like Facebook and Instagram.
Overall, Shiprocket’s mission is to democratize e-commerce logistics by making it accessible to businesses of all sizes. Through its platform, the company aims to simplify the shipping process and help sellers grow their businesses by providing affordable and efficient shipping solutions.
Shiprocket Founders / History of Shiprocket
Shiprocket was founded in 2017 by two friends, Saahil Goel and Gautam Kapoor. Both of them had experience working in the e-commerce industry and recognized a major pain point for small and medium-sized businesses (SMBs) – the high cost and complexity of shipping logistics.
Founding and Co-founding team includes –
- Vishesh Khurana – Co-Founder
- Gautam Kapoor – Co-Founder & COO
- Saahil Goel – Co-Founder & CEO
- Akshay Ghulati – Co Founder and COO
Saahil Goel had previously co-founded Kraftly, a social commerce platform for SMBs, and had also worked as an e-commerce consultant. Gautam Kapoor, on the other hand, had worked at Jabong, a major Indian e-commerce company, as a category manager.
Together, they realized that there was a need for a more affordable and streamlined shipping solution for SMBs in India. They founded Shiprocket with the goal of making shipping easy and accessible to businesses of all sizes.
Initially, the company focused on building partnerships with logistics providers and developing a platform that would allow sellers to easily manage their shipping operations. Shiprocket quickly gained popularity among SMBs in India, and in 2019, the company raised $13 million in funding from a group of investors led by Tribe Capital.
Since then, Shiprocket has continued to grow and expand its services. The company now has over 100,000+ customers and has shipped over 20 million orders to over 26,000 pin codes in India. Its success has made it one of the leading e-commerce logistics companies in India, and it continues to innovate and develop new solutions to help SMBs succeed in the e-commerce space.
Shiprocket Business Model
Shiprocket’s business model is based on providing end-to-end shipping solutions to small and medium-sized businesses (SMBs) in India. The company charges a fee for each shipment that is processed through its platform, and it earns revenue by leveraging its partnerships with logistics providers to offer discounted shipping rates to its customers.
Here’s a more detailed breakdown of Shiprocket’s business model:
Shipping fees: Shiprocket charges a fee for each shipment that is processed through its platform. The fee is based on a variety of factors, including the weight and dimensions of the package, the shipping destination, and the chosen courier partner. Customers can choose to pay for each shipment individually or sign up for a monthly subscription plan that includes a certain number of shipments.
Partner commissions: Shiprocket has partnerships with over 17 logistics providers, including major players like FedEx, Delhivery, Blue Dart, and DHL. These partnerships allow Shiprocket to offer discounted shipping rates to its customers. In exchange, Shiprocket earns a commission from its logistics partners for each shipment that is processed through its platform.
Value-added services: Shiprocket offers a range of value-added services to its customers, including automated shipping labels, order management tools, courier recommendations, and shipment tracking. Some of these services may be provided for free, while others may come at an additional cost.
Overall, Shiprocket’s business model is based on providing affordable and efficient shipping solutions to SMBs in India. By leveraging its partnerships with logistics providers and developing a user-friendly platform, Shiprocket has been able to build a successful business that helps its customers grow and succeed in the e-commerce space.
Shiprocket Growth and Revenue
Shiprocket has been experiencing rapid growth over the past few years. In 2020, the company reported a 700% increase in shipment volumes, and its revenue grew by over 350%.
Shiprocket’s revenue is primarily generated through the fees it charges for its logistics services. The company offers a range of plans to suit the needs of different businesses, with charges based on the weight and distance of each shipment. Additionally, the company generates revenue through value-added services, such as insurance and packaging solutions.
Shiprocket’s growth can be attributed to several factors, including its focus on technology and innovation, its user-friendly platform, and its ability to provide affordable and reliable logistics services to businesses of all sizes. The company has also expanded its reach by partnering with leading marketplaces and e-commerce platforms, allowing it to serve a larger customer base.
Overall, Shiprocket’s revenue and growth are a testament to the growing demand for efficient logistics solutions among businesses, particularly those operating in the e-commerce space. With its innovative platform and commitment to customer satisfaction, the company is well-positioned to continue its rapid growth trajectory in the years ahead.
Also Read: Delhivery – Startup Story, Business Model, Revenue, Growth & Funding
Shiprocket Funding and Investors
The company has recently received several rounds of funding to help fuel its growth and expansion plans. Here is an overview of the funding received by Shiprocket:
Seed Funding: Shiprocket raised seed funding of $1 million in November 2017. The funding was led by Delhi-based VC firm BEENEXT and Dubai-based VentureSouq. The funds were used to develop and launch the company’s e-commerce logistics platform.
Series A Funding: In November 2019, Shiprocket raised $13 million in Series A funding. The funding round was led by Tribe Capital, with participation from Innoven Capital and existing investor BEENEXT. The funds were used to expand the company’s operations, improve its technology infrastructure, and develop new products and services.
Series B Funding: In June 2021, Shiprocket raised $41.3 million in Series B funding. The funding round was led by PayPal Ventures, with participation from existing investors Tribe Capital, Innoven Capital, and BEENEXT. The funds will be used to further expand Shiprocket’s operations and invest in new technologies such as AI and machine learning to improve its logistics solutions.
Series C Funding: In May 2020, Shiprocket raised Series C funding round of $13 million . The round was led by Tribe Capital along with Innoven Capital and existing investor Bertelsmann India Investments.
In February 2021, Shiprocket raised $27 million in Series C3 funding round. The round was co-led by Tribe Capital along with March Capital Partners. DST Global also participated in the round along with existing investor Bertelsmann India Investments.
Series D Funding: In July 2021, Shiprocket raised $41.3 million in its Series D1 round led by PayPal Ventures, the corporate VC arm of PayPal. With this round, Shiprocket’s total funding brings to $94.3 million.
Series E1 Funding: In December 2021, Shiprocket raised $185 million in a Series E round co-led by Zomato, Teamasek and Lightrock India. Existing investors InfoEdge Ventures and March Capital along with Moore Strategic Ventures and 9unicorns also participated in the round.
This roughly valued Shiprocket at over $930 million.
Series E2 Funding: In August 2022, Shiprocket raised $33.5 million in a Series E2 round fresh funding round led by Lightrock India. Singapore’s sovereign fund Temasek, Bertelsmann, Moore Strategic Ventures, PayPal, March Capital, and Huddle also participated in the funding round.
The logistics startup was valued at around $1.2 Billion in the funding round, becoming the country’s 106th unicorn.
Overall, Shiprocket has raised a total of $386 million in funding as of 2023. The company’s success in raising multiple rounds of funding demonstrates its strong growth potential and the confidence of investors in its business model. The funds will enable Shiprocket to continue to invest in new technology, expand its operations, and further cement its position as a leading logistics and shipping solutions provider in India.
Shiprocket Future
Expansion into new markets: Shiprocket has already established a strong presence in India, but there is potential for the company to expand into new markets, particularly in Southeast Asia and other emerging economies.
Focus on sustainability: As environmental concerns become increasingly important, logistics companies like Shiprocket may shift towards more sustainable and eco-friendly practices. This could involve the use of electric vehicles, renewable energy sources, and more efficient packaging solutions.
Investment in technology: Shiprocket has already demonstrated its commitment to technology-driven logistics solutions, and this trend is likely to continue in the future. The company may invest in new technologies such as automation, artificial intelligence, and blockchain to further streamline its operations and improve customer experience.
Partnership with more marketplaces: Shiprocket’s partnerships with e-commerce platforms have been a key driver of its growth, and the company is likely to continue partnering with more marketplaces to expand its customer base.
Overall, Shiprocket’s future is likely to be shaped by a combination of these and other factors, as the company continues to adapt to the evolving needs of the logistics industry and its customers.
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