Logistics Unicorn Shiprocket sets Sights on Profitability in FY25

by IS_Indust
Saahil Goel

Shiprocket’s CEO, Saahil Goel, highlighted the company’s strategy of acquiring businesses that offer essential products and services required by sellers for seamless logistics solutions. For instance, in 2022, Shiprocket acquired Rocketbox to provide B2B bulk shipment services and Glaucus, a warehousing company, to cater to the warehousing needs of mid-to-large-sized sellers. Since 2022, Shiprocket has acquired five companies, including Pickrr, an e-commerce Saas platform serving D2C brands and SME sellers, for $200 million. Pickrr’s platform offers insights to assist sellers in optimizing their logistic operations.

Looking ahead to FY25, while Shiprocket plans to continue its acquisitions, the company aims to achieve profitability this fiscal year. “We initiated several pilots and found that some were successful while others were not. Those that succeeded have yielded exceptional results, leading to profitability,” stated Goel.

Shiprocket primarily caters to SME sellers, with average annual sales ranging from Rs 10-20 lakh. In FY23, the company recorded operating revenue of Rs 1,089 crore, marking an 80% increase from the previous fiscal year’s Rs 611.1 crore. However, its losses rose to Rs 341 crore in FY23 from Rs 93.15 crore in the preceding year. In FY21, the company reported an overall profit of Rs 12.5 crore. Recent media reports suggested that one of Shiprocket’s investors, Zomato, was considering a buyout at a $2 billion valuation, a claim later refuted by both companies. CEO Goel emphasized that Shiprocket is currently not open to acquisition and plans to enter the public markets in a few years.

In the upcoming fiscal year, Shiprocket intends to intensify its focus on cross-border shipping, as highlighted by Goel. He noted that the government is facilitating e-commerce exports, aligning with Shiprocket’s strategy. “We’ve established a system enabling us to ship goods from India to the US within 8-9 days at a cost of approximately $7-8,” he emphasized.

Read More: Click Here

Related Posts

Leave a Comment