Logistics aggregator Shiprocket has raised $13 million led by Tribe Capital, a Silicon Valley-based investment firm, along with Innoven Capital and existing investor Bertelsmann India Investments. Tribe Capital was founded by former executives of Chamath Palihapitiya’s Social Capital.
The company in a statement said that the latest capital infusion gives nearly 30 times returns in five years for Shiprocket’s angel investors who exited in this round. The angel investors include Jatin Aneja and 5ideas or Superfuel run by Gaurav Kachru and Pearl Uppal.
The logistics startup said it will use the funds for product development roadmap which includes hiring top talent across the data science and engineering domains, besides aiding its international expansion plans. With this round, the company has raised $26 million so far.
Launched in 2017, Shiprocket turned profitable in FY18-19 with an annualised revenue run rate between $25-30 million. The startup processes more than 2 million monthly shipments from about 35,000 sellers to sell directly to their consumers across India.
“As a truly disruptive platform, Shiprocket has offered numerous SMEs a cost-effective and world-class solution for e-commerce shipping. The boom in direct-to-consumer brands and social selling across India has been facilitated by companies like ours who are committed to providing advanced technology and fulfilment solutions to online sellers enabling them to compete with larger brands and marketplaces,” said Saahil Goel, CEO and Co-founder, Shiprocket.
As part of the fundraising agreement, Arjun Sethi, co-founder of Tribe Capital LLC, will join Shiprocket’s board of directors. “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,” Sethi said.