Shiprocket Gets SEBI Nod For ₹2,500-Crore IPO

The Securities Exchange Board of India (SEBI) has confirmed of the formal approval of the proposed initial public offering (IPO) of approximately ₹2,500 crore for Shiprocket. It brings the listing to become the next step in building trust among investors in the profitability and scalability of the Indian tech-driven logistics ecosystem, or could put a strain on investor confidence in another expansion-stage digital business venture.

The question now remains: Can the listing of Shiprocket strengthen the belief in the profitability and scalability of the Indian technology-driven logistics ecosystem, or can it challenge investors' inclination to place another bet on a growth-stage digital company?

Understanding the IPO structure

The issue, as reported to SEBI, will comprise of a fresh issue of shares, as well as an offer to sell. It is reported that approximately half of the ₹ 2,500 crore issue will be a fresh capital raise, with the remainder being an offloading of existing shareholders. Shiprocket will be traded on the Bombay and the National Stock Exchange.

The fresh proceeds are likely to be utilised in technology investments, expansion of capacity, and international cross-border logistics. The company has also provided strategies for strengthening its newer verticals in checkout, payments, and marketing services, which are emerging as major contributors to revenue.

From startup to scale

Shiprocket was established in 2017 by Saahil Goel, Gautam Kapoor, Akshay Ghulati, and Vishesh Khurana as a company that provides services to small and medium-sized online sellers, facilitating shipping and order fulfilment. It has linked traders with a greater number of 25 courier partners and operates in over 24,000 serviceable PIN codes in India and more than 200 countries worldwide.

The platform facilitates order management, real-time tracking, returns management, and analytics-oriented delivery optimisation. Shiprocket is trusted by over 250,000 e-commerce businesses.

Financial performance

Shiprocket grew its operating revenue by 24% year-on-year to ₹ 1,632 crore in FY25, and its net loss decreased to ₹ 74 crore in FY25 from ₹ 595 crore in FY24. The growth in the top line was effective in improving the turnover and cost discipline, and decreasing exceptional expenses. The company said that a major portion of its losses was due to employee stock ownership plan (ESOP) expenses amounting to ₹91 crore.

The new business lines at Shiprocket, such as cross-border shipping, marketing services, checkout and fulfilment, have almost 20% of the total revenue. These segments are observed to be the key to its profitability in the medium term.

Investor base and ownership

Some of the leading investors in Shiprocket include Zomato, Temasek, Lightrock India and Moore Strategic Ventures. Zomato holds an approximate 8% stake, with Temasek and Lightrock being among its other major institutional shareholders. According to sources, these key investors are not selling in the IPO, which means that they still believe in the long-term prospects of the company. The public issue should also give liquidity to early investors and founders as well as bring on-board increased transparency and governance criteria that are characteristic of listed companies.

What comes next

Shiprocket is set to submit its final prospectus and determine the price range in the next few weeks, with SEBI approval obtained. The IPO will soon be opened to public subscription, which will target both institutional and retail investors.

This is perceived as a possible benchmark offering by industry observers to the mid-stage Indian start-ups who are in need of moving out of the private and into the public capital markets. The result will also be an indicator of the continued strong interest of investors in technology-based, asset-light logistics platforms.

Conclusion

The public issue of Shiprocket is not just a funding transaction but a trial of the Indian digitalising logistics business and the viability of its D2C enabler eco-system. The growth, the mix of investors, and the fact that the company has improved financials are the grounds that one can be optimistic about. However, it will all boil down to the ability of Shiprocket to scale its operations into tangible profitability and shareholder value. The question remains: Is this perceived by the public investors as a logistics disruptor that is at the next stage of sustainable development?

References

The Times of India
The Economic Times
Inc 42
Shiprocket
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The Economic Times | Tech
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