[Funding] Shiprocket raises USD 41.3 million in Series D1 from PayPal Ventures and others

Delhi-based eCommerce fulfilment platform, Shiprocket has raised USD 41.3 million (INR 305 Cr) in Series D1 funding. Apart from PayPal Ventures, the corporate VC arm of PayPal, Info Edge Ventures, an investment fund backed by publicly listed Info Edge also participated in the round. Further, Temasek Holdings, along with existing investor Bertelsmann India Investments, March Capital, and Tribe Capital also partook in the round. The funding round also saw participation from strategic partners, such as Razorpay and Innoven Capital. Successful entrepreneurs including Cred founder Kunal Shah and Zomato founder Deepinder Goyal also invested in Shiprocket.

The latest infusion of capital brings Shiprocket’s total funding to USD 94.3 million. The investment will help Shiprocket further accelerate its mission to democratize eCommerce fulfilment for the fast-growing universe of D2C retailers. The company will deploy the freshly infused capital towards aggressive core product expansion and R&D, talent acquisition, as well as, into adjacent product development that can help retailers enhance the post-order consumer experience. The company also plans to direct towards the platform’s new strategic initiatives. It plans for global expansion starting with the Middle East.

Shiprocket enables fast and cost-effective shipping for D2C retailers; across 29,000 pin codes PAN India and 220+ countries and territories. Thus, the Series D1 financing caps an exceptional year for Shiprocket. the company said in a statement. It saw rapid business growth, key executive appointments, and numerous product launches.

Speaking on the new capital, Saahil Goel, CEO, and Co-Founder of Shiprocket said that D2C commerce forms roughly 15% of the overall eCommerce market in India; this is projected to grow to 30-35% in the next 5 years. He added that the company had abundant potential and opportunities available for technology enablers. “The future lies in enabling the entire stack of solutions for the post-purchase leg for D2C eCommerce transactions. We also wish to extend a very warm welcome to PayPal Ventures and Info Edge Ventures. We thank them for joining us on this journey along with our existing investors,” he said.

From the investors

Marc Donnadieu, Director, PayPal Ventures compared the business growth of PayPal with Shiprocket. He said “Shiprocket has excelled by focusing on building products that solve major logistical problems for businesses as they scale; much like PayPal has supported merchants with payments. We’re thrilled to join Shiprocket as an investor and support the development of its tools. It will continue to shape the dynamic commerce ecosystem in India for years to come.”

Pankaj Makkar, Managing Director, Bertelsmann India Investments said, “We are thrilled to continue our partnership with Shiprocket which is strengthening India's D2C’s supply chain. The company has built very deep technology and AI products. This could take the user experience, on the merchant as well as end-user side, to the next level. It will also drive India’s supply chain and logistics growth. We look forward to having like-minded partners like Info Edge and PayPal join our cap-table and support Shiprocket in its mission.”

“Over 100,000 online sellers in India use Shiprocket today to streamline their post-checkout process; starting from logistics to warehousing to COD management. On a macro level, we believe the trend of businesses becoming omnichannel and resellers starting their independent businesses is here to stay. The goal is that as Shiprocket expands its capabilities and tools for sellers, anyone with a product to sell should be able to avail of Shiprocket’s suite of products and services at one click to get their business off-the-ground with an Amazon-like one-day delivery experience. The Shiprocket team has an incredible combination of strategic thinking with execution depth and capital efficiency. We are very excited to partner with them as they enter their next phase of growth and further ease operations and financing for their sellers”, added Kitty Agarwal, Partner, Info Edge Ventures.