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Zomato-backed Shiprocket Reports 21% Increase in FY24 Operating Revenue, Net Loss Widens

• ByStartupStory     |    October 23, 2024

E-commerce enablement firm Shiprocket, backed by Zomato, has reported a 21% increase in its operating revenue for fiscal year 2024, reaching Rs 1,316 crore, according to co-founder and chief executive Saahil Goel. The company, which underwent a major restructuring in FY23 by merging several of its acquisitions, experienced a widening of its net loss to Rs 595 crore for FY24, up from Rs 341 crore in the previous year.

Despite the widened losses, Shiprocket remained operationally profitable on a cash basis in the first two quarters of FY24, with Goel stating that the company expects to achieve full profitability by the end of FY25.

“Our focus continues to be on the core business while generating more profits…the emerging businesses are growing fast and we’re doubling down on segments such as cross-border shipping and checkout,” Goel said.

Shiprocket’s emerging businesses, which include cross-border services, checkout, and fulfillment, have shown rapid growth, increasing by 70-100% year-on-year. These sectors now account for nearly one-fifth of the company’s revenue.

Shiprocket has yet to officially file its financial statements with the Registrar of Companies. However, Goel highlighted that the company hit $3 billion in gross merchandise value (GMV) for FY24, and it continues to target additional revenue streams from services like marketing, sourcing, payments, and lending for online sellers.

“With over $400 million in GMV from checkout alone, the numbers are scaling rapidly. Cross-border commerce is also growing as Indian merchants increasingly sell globally, tapping into international demand for products like jewellery, Ayurveda, and spiritual items,” Goel added.

In FY23, Shiprocket reported a 78% year-on-year increase in operating revenue, largely driven by mergers. However, its net loss significantly widened, reflecting the integration costs. In FY24, the company’s Rs 595 crore net loss included a non-cash accounting impact of Rs 244 crore, attributed to one-time restructuring and integration expenses.

Over the past few years, Shiprocket has made several key acquisitions, including the retail SaaS platform Omuni from Arvind Internet, e-commerce logistics solutions provider Pickrr, omnichannel user engagement platform Wigzo, and supply chain management firm Glaucus.

“We successfully concluded the integration and restructuring of our acquired businesses, ensuring a smooth transition that strengthened our core operations. This year, our focus has been on scaling the business sustainably and launching cutting-edge tech solutions that simplify the e-commerce landscape for small and medium businesses,” Goel said.

The company also achieved a notable reduction in its cash burn during FY24, slashing it by about half compared to FY23.

Looking ahead, Shiprocket is focusing on expanding key emerging areas, including cross-border enablement for brands, intracity rapid delivery service Shiprocket Quick, checkout services, and Shiprocket Capital, its revenue-based financing offering.

The firm, which counts investors such as Temasek, Lightrock, and Tribe Capital, became a unicorn in 2022 after raising $32 million at a valuation of $1.3 billion. Currently, Shiprocket is in discussions to close a $75 million funding round led by Tribe Capital at a flat valuation, involving a mix of primary and secondary capital.

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