Tribe Capital is in talks to lead a $75 million to $100 million funding round into the logistics aggregator Shiprocket, according to a person familiar with the matter. This is a notable financing deliberation at a time when most Indian startups are struggling to raise capital.
The funding talks are ongoing and the terms may change, two people said, requesting anonymity as the deliberations are private. Tribe Capital and Shiprocket declined to comment.
New Delhi–headquartered Shiprocket operates an e-commerce logistics and shipping software solution for courier services. Its platform employs a machine learning–based data engine that recommends proper courier service for a business and chooses a courier company, prints shipping labels, and tracks orders from a single panel, enabling businesses to manage their shipping and returns simply and effectively.
Shiprocket, which counts Temasek and Zomato among its backers, is aiming to become IPO-ready in the next 12 to 18 months, according to a company note reviewed by TechCrunch. Its annualized run rate, at the end of September, stood at over $165 million, the source said.
On its website, Shiprocket says it works with 250,000 merchants in India, who do as many as 200 million transactions a year.
The startup plans to expand its financing option to merchants and buy now, pay later offerings to consumers. It has projected to grow its revenue run rate to about $500 million by the end of 2025, the internal note said. It’s also looking to expand its cross-border shipping and checkout offerings, said another person familiar with the company’s plans.
Tribe Capital, which is an existing backer of Shiprocket, is looking to expand its India focus. Its leader Arjun Sethi told Indian daily Economic Times earlier this year that the firm is looking to raise a $250 million India-focused fund.
Mirroring the sluggish investment pace in startup ecosystems globally, Indian startups have secured roughly $7 billion in capital in 2023, according to market intelligence platform Tracxn, down from about $25 billion in 2022 and $37 billion in 2021. In fact, it’s the lowest in seven years.
Late-stage funding experienced the steepest decline, plummeting over 73% year over year. Moreover, the number of mega-rounds above $100 million totaled just 17 for the year, a 69% decrease compared to 2021.