Summary of this article
Shiprocket has filed revised Draft Red Herring Prospectus to raise Rs 2342.35 crore through an IPO, comprising a fresh issue of Rs 1,100 crore and an Offer-for-Sale of Rs 1,242.3 crore.
Revenue for the financial year 2024-2025 was Rs 1315.97 crore, showing over 20 per cent growth from the preceding fiscal, but the net loss widened to Rs 595.18 crore.
The logistics player's funds will be used for platform growth, debt repayment, and potential inorganic expansion, with risks including negative cash flows and dependence on third-party partners.
The primary market has witnessed a record high fundraise of Rs 1,62,650.22 crore as of December 15. However, even as the calendar year nears its end, the primary market activity is yet to stop, with more and more companies tapping the primary market to raise funds.
Shiprocket, a Gurugram-based logistics services provider, has filed revised draft papers with the Securities Exchange Board of India for its initial public offering (IPO). Notably, the latest filing by the logistics services provider follows its previous confidential filing with the Sebi for an IPO.
Shiprocket IPO: Offer Size
Shiprocket IPO consists of a fresh issue of shares and an offer-for-sale component. As per the draft red herring prospectus (DRHP) filed by the company, the logistics services provider seeks to raise Rs 2342.35 crore via its public issue. The company seeks to raise Rs 1,100 crore via the fresh issue of shares and Rs 1,242.3 crore via an offer-for-sale.
Shiprocket IPO: Selling Shareholders
Early investors and founders of the logistics services player are set to participate in the offer-for-sale and pare their stake. Investors such as LR India Fund, Tribe Capital III, LLC,MCP3 SPV LLC, Bertelsmann Nederland B.V. and textile conglomerate Arvind will pare their stake in the public issue. Founders of the company, including Gautam Kapoor, Saahil Goel and Vishesh Khurana, will also reduce their stake via the OFS. Other selling shareholders include Ankit Kaushik and Gaurav Mangla, the co-founders of Pickrr, which was acquired by Shiprocket.
Shiprocket IPO: Key Financials
In the six-month period ended June 30, 2025, Shiprocket’s revenue from operations was Rs 942.67 crore, and the company’s net loss stood at Rs 38.32 crore.
Shiprocket’s revenue from operations increased by over 20 per cent to Rs 1315.97 crore in the financial year ended March 31, 2025, compared to Rs 1088.827 crore in the preceding fiscal. The company posted a net loss of Rs 595.18 crore in FY 2024-25, widening from a net loss of Rs 359.3 crore in the preceding fiscal.
Shiprocket: Business Model
Shiprocket is a technology which enables e-commerce transactions for digital retailers in India. The platform enables merchants to sell directly to end consumers through their own websites, apps or social media channels. The company’s business provides solutions which seek to simplify logistics, checkout, payments, fulfilment, and cross-border trade. The company operates on an asset-light business model. The company’s core business includes its domestic shipping platform and app, and its emerging business focuses on products such as its cargo and fulfilment business, cross-border platform, ads and marketing solutions. The company primarily derives its revenue from the sale of merchant solutions,
Shiprocket: Competitors
Shiprocket faces competition from other aggregators that streamline services for merchants, large marketplaces, dedicated third-party logistics providers and other courier companies. According to the DRHP, the company’s peers include Unicommerce Solutions, Shopify Inc., Global-E Online, and BigCommerce Holdings.
Shiprocket IPO: Should You Apply?
Here’s a look at the strengths and risks mentioned by the logistics services provider, which investors must consider before applying for the public issue:
Shiprocket: Key Risks
Here’s a look at some of the key risks related to Shiprocket’s business according to the company’s RHP:
The company mentioned in its DRHP that it may face challenges in its growing cross-border business due to its limited experience in such international markets and dependence on ecosystem partners.
The company disclosed that it does not have exclusive arrangements with our logistics partners, including couriers, suppliers and cargo partners, and thus they may prioritise the provision of services to the company’s competitors or refuse to renew contracts, which can adversely affect the company’s financial condition.
The logistics company has incurred negative cash flows from operations, with net cash used in operating activities of Rs 215.99 crore and Rs 137.95 crore in the Fiscal years 2024 and 2023, respectively. Any future negative cash flows can adversely impact the company’s liquidity and business prospects.
Shiprocket: Key Strengths
Here’s a look at some of the key strengths of Shiprocket’s business according to the company’s RHP:
The company claims to have a profitable and scalable core business along with operating leverage.
The logistics industry player has a self-serve platform which offers an enterprise-grade experience, drawing organic traffic.
The company has an AI, data and automation-driven platform for operational efficiency and a modular and open platform enabling rapid expansion.
Shiprocket IPO: Objective
Shiprocket plans to use the proceeds of the public issue for investment in the growth of its platforms, vis-a-vis spending on marketing initiatives, investment in technology infrastructure and capabilities. The logistics services provider also plans to use the proceeds for repayment and prepayment of its borrowings and interest accrued on the borrowings. The funds raised by the logistics company will also be used for funding inorganic growth via unidentified acquisitions. A part of the proceeds will also be used for general corporate purposes.
