Shiprocket Prepares for Milestone IPO Amid E-commerce Growth

NEW DELHI, Nov. 23 – Shiprocket, a prominent logistics technology company, is gearing up for a significant milestone as it prepares to go public. According to Co-Founder and CEO Saahil Goel, the company's upcoming Initial Public Offering (IPO) represents a defining moment in its journey, marking the company’s evolution into a mature, disciplined, and scalable business. This development comes as India's e-commerce sector experiences rapid growth, particularly in direct-to-consumer (D2C) and quick commerce segments.

"The IPO moment is an interesting milestone. It is obviously a good validation of discipline and scale we've built, and of governance", Goel stated in an interview. He emphasized that the IPO is not an endpoint but the start of a new phase for the company. "I think of the company as a child, 13 years old. So, this is adolescence, and we've still got a long way to grow and mature", he said.

Confidential Filing and Strategic Focus

Shiprocket, which counts investors like Temasek, Zomato, and PayPal among its backers, opted for a confidential route to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) earlier this year. This approach, increasingly popular among Indian startups, allows companies to submit essential documentation while keeping sensitive financial and strategic details out of public view during the initial review phase.

Goel highlighted that the IPO will "institutionalize" Shiprocket and align its stakeholders for long-term, productive returns. The company, which has grown from being a shipping partner to a comprehensive e-commerce facilitation platform, integrates various services for India's micro, small, and medium enterprises (MSMEs), D2C brands, and social commerce retailers. These services include shipping, fulfillment, marketing tools, customer communication, and commerce infrastructure.

Riding the E-commerce Wave

As India witnesses a surge in e-commerce activity, Shiprocket is positioned to capitalize on multiple growth opportunities. According to Goel, e-commerce in India is growing at an annual rate of 20% to 30%. Within this, quick commerce and direct commerce - sectors where Shiprocket operates - are expanding even faster.

Goel also pointed out the increasing demand driven by first-time online shoppers from Tier-2 and Tier-3 cities, as well as rising urban spending. "E-commerce penetration is only about eight percent in India and nowhere near saturation", he said, signaling significant untapped potential in the market.

Three Growth Engines

Shiprocket has identified three key growth areas as it prepares for its next phase:

1. Marketing Stack: Shiprocket plans to help its 1.75 lakh sellers optimize order generation through marketing platforms.
2. Omni-channel Logistics and Fulfillment: With growing demand, the company aims to expand its logistics and fulfillment services across multiple channels.
3. Cross-Border Services: Shiprocket sees significant potential in India's export ecosystem, especially as government initiatives drive manufacturing and exports. "Cross-border services continue to be a very promising area", Goel said, adding, "As manufacturing grows, as push for export grows... merchants will want to capture higher average order values (AOVs), more premium products will get built in India for us, which will have markets abroad."

Financial Performance and Profitability

Shiprocket's financial performance underscores its readiness for the IPO. The company reported revenue of ₹1,632 crore in FY25, a 24% year-on-year growth. Core business revenue, which includes domestic shipping and value-added tech offerings, grew over 20% to ₹1,306 crore. Emerging businesses, such as cross-border platforms and omni-channel offerings, saw a 41% growth.

The company also made significant progress in reducing losses. Net losses fell to ₹74 crore in FY25 from ₹595 crore in FY24, with much of the remaining losses attributed to ₹91 crore in ESOP expenses. Shiprocket reported a positive cash EBITDA of ₹7 crore in FY25, a turnaround from a burn of ₹128 crore in FY24.

Goel emphasized the company’s focus on maintaining a balance between growth and profitability. "From a profitability perspective, I feel we are well-positioned to be able to dial this the way we want. At the moment, we think we need to optimize where we aren't burning cash unreasonably but at the same time, we are being able to drive the maximum growth... because this business is in infancy."

Innovation and Strategic Acquisitions

Innovation remains central to Shiprocket’s strategy, with artificial intelligence (AI) playing a critical role in developing scalable, profitable solutions. The company focuses on testing AI-driven products to achieve the right product-market fit before scaling.

Shiprocket is also open to strategic mergers and acquisitions but remains selective. "We take a very, very dispassionate lens to M&A because we know our strategy. We're not going to change our direction because something has come about, and we do it largely because something can help us drive higher returns sooner", Goel explained.

Looking Ahead

As Shiprocket prepares for its IPO, its leadership is optimistic about the company’s future. "We're bringing the right tools, everything from marketing to payments to shipping, to let anybody easily plug these together and start or scale their business", Goel said. With a focus on leveraging India’s growing e-commerce market and expanding its services, Shiprocket is positioned to navigate the challenges and opportunities that lie ahead. While Goel refrained from commenting on specific IPO timelines, he confirmed that the listing is expected to occur next year.

For Shiprocket, the IPO is not just a culmination of its achievements but a springboard for its next growth chapter. "This is adolescence, and we've still got a long way to grow and mature", said Goel, reflecting the company’s long-term vision.

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