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MUFG Bank and Koch Group Seek CCI Approval for Minority Stake in Shiprocket

• ByStartupStory     |    October 25, 2024

Japan-based MUFG Bank and US-based conglomerate Koch Group have approached the Competition Commission of India (CCI) for approval to acquire minority stakes in logistics unicorn Shiprocket. The proposed transaction involves MUFG Bank acquiring a minority shareholding in Shiprocket, according to a notice filed with the CCI.

MUFG, or Mitsubishi UFJ Financial Group, is a prominent financial services group headquartered in Tokyo. Meanwhile, Koch Group, through its subsidiary KDT (Koch Disruptive Technologies) Venture Holdings, is also eyeing stakes in the logistics firm.

Inc42 has reached out to Shiprocket for comments regarding this development, promising to update the story upon receiving a response.

In recent financial performance, Shiprocket has reported a notable increase in operating revenue, which jumped 20.8% to INR 1,316 Cr in FY24, up from INR 1,089 Cr in the previous fiscal year. However, the company has also faced challenges, including a staggering 74.4% slump in its bottom line growth, resulting in a net loss of INR 595 Cr in FY24 compared to a loss of INR 341 Cr in FY23.

The company attributed the surge in losses primarily to a one-time restructuring and integration-related accounting impact of INR 244 Cr related to acquired entities.

Despite these setbacks, Shiprocket stated that it experienced profitability in the first two quarters of the current financial year, asserting that it is well on track to achieve profitability by FY2025.

Founded in 2017 by Saahil Goel, Vishesh Khurana, Akshay Gulati, and Gautam Kapoor, Shiprocket acts as an aggregator of third-party logistics companies. The platform collaborates with 17 courier partners, including industry leaders like Delhivery, FedEx, Aramex, Xpressbees, DTDC, and Shadowfax.

In August, Shiprocket piloted a Direct-to-Consumer (D2C) marketplace named Zop, which launched a few weeks ago and currently hosts around 200-300 brands across eight categories, including fashion, beauty, and electronics. Zop charges a sales commission from brands for listing their products, positioning itself in competition with established players like Meesho, Amazon, Flipkart, and JioMart.

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