Zomato-backed Shiprocket wants to raise ₹2,500cr via IPO
What's the story
Shiprocket, a Zomato-backed logistics company specializing in D2C brand shipments, is gearing up to file a draft prospectus with the Securities and Exchange Board of India(SEBI) for its Initial Public Offering (IPO). The company hopes to raise ₹2,000-2,500 crore. According to the Economic Times, Shiprocket's board has approved the IPO plan and plans to submit its papers within two days under SEBI's confidential filing route.
Approach
A look at the IPO strategy
The confidential filing route enables companies to postpone public disclosures of their financials and other IPO-related details. Boat and PhysicsWallah have also used this method for their prospectuses, which are under review. Through its IPO, Shiprocket plans to raise around ₹1,000-1,200 crore in fresh capital. The company has partnered with Axis Capital, Kotak Mahindra, JM Financial as well as Bank of America for its IPO.
Financial growth
Fiscal performance and acquisitions
In FY24, Shiprocket's operating revenue increased by 21% to ₹1,316 crore. Although its net loss widened from ₹341 crore the previous year to ₹595 crore for the fiscal year ending March 2024 (due to past acquisitions), the company became cash-flow positive in FY25. These acquisitions included retail software solutions platform Omuni, intracity trucking aggregator RocketBox, and logistics management solutions provider Pickrr.
Business expansion
Shiprocket's diversification and partnerships
Founded in 2012, Shiprocket handles shipments for D2C brands and online sellers. The company is also diversifying to cross-border shipping, checkout and fulfillment services. In the quick commerce space, Shiprocket is working with hyperlocal logistics service providers such as Porter, Borzo as well as Shadowfax for merchants and SMEs. The firm has also partnered with quick commerce players like Zepto and Swiggy Instamart to help D2C brands replenish stock at dark stores and warehouses.