Shiprocket, the e-commerce enablement platform backed by notable investors like Temasek and Zomato, has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO) valued at ₹2,400 crore. This development marks a significant milestone for the company as it prepares to enter the public market.

IPO Structure and Investor Participation

The IPO is structured as a balanced offering, with equal portions allocated to fresh issue of shares and an offer for sale:

Notably, major backers including Temasek, Zomato, and Info Edge have chosen not to dilute their holdings in this round. The offer for sale will instead come from early investors and founders, indicating continued confidence from key stakeholders in the company's future prospects.

Financial Performance

Shiprocket has demonstrated strong financial growth and improved profitability in recent years:

The company's financial trajectory shows significant improvement, with revenue growth of 24% year-over-year and a substantial reduction in net loss. Notably, Shiprocket achieved a positive adjusted EBITDA of ₹7 crore in FY25, compared to a cash burn of ₹128 crore in the previous year. The core business cash EBITDA more than doubled, reaching ₹157 crore.

IPO Objectives and Future Plans

The proceeds from the IPO are earmarked for several strategic initiatives:

• Product development
• Technology upgrades
• Potential acquisitions
• Expansion of logistics and warehousing capabilities

These objectives align with Shiprocket's vision to enhance its position in the e-commerce enablement sector and capitalize on the growing digital commerce market in India.

IPO Process and Management

Shiprocket had initially filed confidential draft papers for the IPO in May. The company has enlisted a roster of reputable financial institutions to manage the IPO:

• Axis Capital
• Kotak Mahindra Capital
• JM Financial
• Bank of America

The involvement of these leading investment banks underscores the significance of Shiprocket's public offering in the Indian capital markets.

Conclusion

Shiprocket's upcoming IPO represents a pivotal moment for the e-commerce logistics sector in India. With its strong financial performance, strategic growth plans, and backing from prominent investors, the company is well-positioned to leverage public market funding for its expansion initiatives. As the e-commerce landscape in India continues to evolve, Shiprocket's public debut will be closely watched by investors and industry observers alike.

E-commerce logistics company Shiprocket has reported strong financial performance, marking a significant milestone in its growth journey. The company not only achieved full-year positive cash EBITDA but also demonstrated substantial revenue growth and improved profitability across its business segments.

Financial Highlights

*Calculated based on available data

Revenue Growth and Business Expansion

Shiprocket's total revenue reached ₹1,632.00 crore, representing a 24% year-on-year increase from ₹1,316.00 crore in the previous period. The company's core business, which includes its primary logistics services, grew by 20% to ₹1,306.00 crore.

Notably, Shiprocket's emerging businesses have shown impressive growth:

• 41% expansion in revenue
• Now contribute 20% of total revenue, up from 11% two years ago

This diversification indicates Shiprocket's successful efforts in expanding its service offerings and market reach.

Profitability Improvements

Shiprocket has made significant strides in improving its profitability:

• Achieved full-year positive cash EBITDA of ₹7.00 crore, compared to a ₹128.00 crore cash burn in the previous period
• Core business cash EBITDA more than doubled to ₹157.00 crore
• Net loss substantially reduced to ₹74.00 crore from ₹595.00 crore in the previous period

It's worth noting that the current losses are primarily attributed to ₹91.00 crore in ESOP expenses, suggesting that operational profitability may be even stronger when excluding this non-cash item.

Operational Efficiency

Shiprocket demonstrated impressive cost discipline. Despite the 24% revenue growth, total expenses remained flat, indicating improved operational efficiency and effective cost management strategies.

Management Commentary

Tanmay Kumar, CFO of Shiprocket, highlighted the significance of these results, stating that achieving full-year positive cash EBITDA is a pivotal milestone for the company. He emphasized that this achievement reflects the strength of Shiprocket's platform and the growing profitability across various segments of the business.

Conclusion

Shiprocket's financial results showcase a company on a strong growth trajectory, with improving profitability and operational efficiency. The combination of robust revenue growth, diversification of revenue streams, and significant reduction in losses positions Shiprocket well in the competitive e-commerce logistics sector. As the company continues to expand its services and optimize its operations, it will be interesting to observe how these positive trends evolve in the future.