The D2C tech enablement platform targets a fresh issue of ₹1,100 crore, while minority early backers plan partial exits through the Offer for Sale
Gurugram-based unicorn Shiprocket has officially filed its updated Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi). The proposed Shiprocket IPO aims to raise a total of ₹2,342 crore. According to the filing, this public offer will be a mix of primary capital infusion and secondary share sales. Specifically, the company targets a fresh issue of ₹1,100 crore, while the remaining ₹1,242 crore will come through an Offer for Sale (OFS).
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The Shareholder Shuffle
A closer look at the filing reveals interesting dynamics regarding investor confidence. While the Shiprocket IPO provides an exit route for some, key backers are staying put. Existing shareholders like Lightrock, Tribe Capital, Bertelsmann, and Arvind Ltd are listed as sellers in the OFS component. Additionally, founders Saahil Goel and Gautam Kapoor will offload a portion of their stakes. However, notably, major investors Zomato (Eternal) and Temasek are not participating in the share sale. Their decision to retain their holdings signals a strong long-term belief in the company’s value proposition despite the volatility in the tech market.
Financial Turnaround
The updated documents paint a picture of improving financial health, which is crucial for the success of the Shiprocket IPO. For the fiscal year 2025, the company reported a revenue of ₹1,632 crore, marking a robust 24 per cent growth from the previous year. More importantly, the firm has managed to drastically reduce its cash burn. Net losses narrowed significantly to ₹74 crore in FY25, down from a staggering ₹595 crore in FY24. This sharp correction suggests that the management’s focus has successfully shifted from “growth at all costs” to sustainable unit economics, a metric that public market investors prioritise.
Beyond Just Shipping
The capital raised from the Shiprocket IPO is earmarked for strategic expansion beyond basic logistics. The company plans to utilise the net proceeds from the fresh issue to strengthen its technology stack and fund inorganic growth. Shiprocket is aggressively pivoting from being a mere courier aggregator to a full-stack “e-commerce enabler”. This includes scaling emerging business verticals like cross-border shipping, checkout solutions, and marketing tools. Consequently, these new value-added services are expected to improve sticky revenue streams and reduce dependency on low-margin delivery services.
The Hinge Point
While the headline number is the ₹2,342 crore target, the real story lies in the “Revenue Retention” metric buried in the fine print. The Shiprocket IPO filing claims a net revenue retention of over 103 per cent for its core business. This indicates that despite the availability of cheaper alternatives, merchants are spending more with Shiprocket year-on-year. It proves that the company has successfully created a “lock-in” effect not through contracts, but through indispensable utility, effectively becoming the operating system for Indian D2C brands rather than just a vendor.