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CCI Approves MUFG Bank and Koch Group’s Investment in Shiprocket

• ByStartupStory     |    December 4, 2024

The Competition Commission of India (CCI) has granted approval for Japan-based MUFG Bank and US-based Koch Group’s subsidiary, KDT Venture Holdings, to acquire minority stakes in logistics unicorn Shiprocket.

The approval, which was sought by MUFG Bank and Koch Group in October, paves the way for the two international entities to take a significant position in Shiprocket, a leading logistics and e-commerce platform. KDT Venture Holdings, a wholly owned subsidiary of Koch Group, will partner with MUFG Bank in this minority investment.

Founded in 2017 by Saahil Goel, Vishesh Khurana, Akshay Gulati, and Gautam Kapoor, Shiprocket has quickly risen to prominence as an aggregator of third-party logistics companies. The startup works with 17 courier partners, including major players like Delhivery, FedEx, Aramex, Xpressbees, DTDC, and Shadowfax, to provide an efficient and reliable shipping experience for e-commerce businesses.

In August, Shiprocket piloted its own direct-to-consumer (D2C) marketplace, Zop, which was hosting around 200-300 brands across categories such as fashion, beauty, and electronics. Zop generates revenue by charging a sales commission from brands for listing their products.

In another significant milestone, Shiprocket was one of only two companies selected by the Government of India to set up pilot e-commerce export hubs (EEHs) in the country. This further strengthens Shiprocket’s position as a key player in the Indian logistics and e-commerce ecosystem.

Financial Performance and Future Outlook

On the financial front, Shiprocket’s revenue for the fiscal year 2024 (FY24) grew by 20.8%, reaching INR 1,316 Cr, compared to INR 1,089 Cr in FY23. However, the startup’s net loss widened by about 75%, jumping from INR 341 Cr in FY23 to INR 595 Cr in FY24. This surge in loss was primarily attributed to a one-time restructuring and integration-related accounting impact of INR 244 Cr linked to the startup’s recent acquisitions.

Over the past two years, Shiprocket has acquired five companies: Wigzo, Pickrr, Glaucus Supply Chain Solutions, Rocketbox, and Omuni. The integration of these companies contributed significantly to the financial restructuring. Earlier this year, CEO Saahil Goel mentioned in an interview with Inc42 that the company may pursue additional acquisitions in the coming months.

Despite the higher losses, Shiprocket remains optimistic about its financial trajectory. The company reported that it achieved profitability in the first two quarters of FY25 and is on track to attain full-year profitability by the end of the financial year.

“Shiprocket’s continued investment in technology and strategic acquisitions is positioning us for long-term success,” said Saahil Goel, CEO and co-founder of Shiprocket. “We remain committed to building a more efficient logistics ecosystem and delivering value to our customers and partners.”

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