Other cross-border investors, in addition to existing investors, could join the round-table which is expected to value the Delhi-based company at over $ 800 million, they said.
The new cycle is still being finalized.
“Temasek is in the process of finalizing the round,” said one of the sources. “The company plans to use new capital for growth and also to acquire smaller startups in areas such as automation and others.”
Company founder Saahil Goel, however, said the funding information was “not accurate”.
“We haven’t finalized our round construction and haven’t signed any conditions yet,” he said in an emailed statement to ET. “The final set of investors, the amount of fundraising, and the appraisal are all ongoing right now. Fundraising aims to help us grow our fulfillment business as well as grow inorganically through technology acquisitions. ”
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An email sent to Temasek did not elicit a response until press time on Tuesday.
Shiprocket essentially aggregates delivery requests from direct-to-consumer (D2C) brands, micro-entrepreneurs and local brands, and sends them to logistics players such as Delhivery and Ecom Express. Apart from shipping services, it also offers its technology stack for retailers to integrate their shopping websites with platforms like Shopify.
So far, Shiprocket has raised around $ 94 million.
By July, he had raised just over $ 41 million in what he called a Series D1 funding co-led by PayPal Ventures, the venture capital investment arm of PayPal, and its existing investor Bertelsmann. India Investments. Goel then told ET that he would add more investors this round.
The growing interest in Shiprocket comes as the company sees increased demand from small businesses and D2C brands increasingly going online as the pandemic has triggered an online shopping boom in across the country.
As of July, it had around 60,000 active merchants on the platform and around 10,000 of them were D2C brands. Shiprocket is increasingly offering one-day and two-day deliveries to these brands so that they can reach consumers faster.
Growth and strategic initiatives
Goel created Bigfoot Retail in 2012 and upgraded to the latest Shiprocket model in 2017. Gautam Kapoor and Vishesh Khurana are the company’s other co-founders.
Thanks to its funding in July, where payments company Razorpay also invested, Shiprocket is now working on strategic initiatives with the Bengaluru-based payments company, people familiar with the issue said.
“They are working on an agreement whereby Shiprocket will offer its services to Razorpay merchants while existing customers of the former will be able to take advantage of Razorpay’s products, including loans,” said one.
This could increase Shiprocket’s shipping volumes, given that Razorpay has a merchant base of over five million, including 1.5 million in the past year alone.
Goel said he was “exploring a close business partnership” with Razorpay.
Shiprocket claims to have an annual turnover of $ 80 million to $ 90 million and 130,000 to 140,000 active merchants per year on its platform. He focused on the growing space of the D2C brand, which now has around 2-3 million daily shipments.
The company has also strengthened its management team.
Last week, he appointed Atul Mehta as director of operations. Mehta, a Unilever and Amazon veteran, will lead Shiprocket’s logistics platform in India, the company said.