“Source:- Tech Crunch”
Shiprocket, a New Delhi-based logistics aggregator that works with direct-to-consumer sellers including several social media influencers, has raised $13 million in a new financing round as it looks to expand its platform overseas.
Silicon Valley-based investment firm Tribe Capital led Shiprocket’s Series C financing round. Innoven Capital and existing investor Bertelsmann India Investments also participated in the round, which brings the three year-old startup’s to-date funding to $26 million.
Shiprocket works with more than a dozen courier companies in India and negotiates terms such as the fee and shipment tracking with them on behalf of its sellers, Saahil Goel, co-founder and chief executive of the startup, told TechCrunch in an interview last year.
The startup today works with more than 35,000 sellers in India and processes about 2 million shipments each month. It also helps sellers with tackling items that get lost during the shipment and enabling cash on delivery, the most popular payment option among customers in India. Gillettte, beauty product chain Mamaearth, beer franchise The Beer Cafe, coaching institute Aakaash Institute, and craft beer maker Bira are among some brands that use Shiprocket’s service.
Shiprocket has also become one of the top selling partners for social media influencers in India who have to take care of the items they sell to their fans themselves. In recent years, a wave of social commerce startups such as Meesho, backed by Prosus Ventures and Facebook, and Simsim have emerged in India as they attempt to reshape how people think about buying online.
“One of the reasons why the United States and emerging economies have thrived over the last 50 years has been a healthy dynamic of small to medium entrepreneurial businesses alongside consolidation and scaling corporations,” said Arjun Sethi, co-founder of Tribe Capital, in a statement.
“We invested in Shiprocket because they empower the small to medium businesses that truly represent the heart and soul of any emerging economy. Today, the SME segment lacks capital finance and credit, infrastructure, technology, and marketing strategies. Shiprocket has enabled these businesses to grow at a time of emerging competition enabled by mobile internet and corporations,” he added.
Shiprocket says it will use the fresh capital to expand its data science and engineering teams and focus on new initiatives including its international expansions. The startup already ships shipment overseas, it claims it delivers in more than 26,000 zip codes in India and 220 additional countries and markets.
The startup said it was profitable in the financial year that ended on March 31, 2019 and has an annualized revenue run rate between $25 million to $30 million. It did not comment on the impact coronavirus pandemic has had on its business.