CCI Approves MUFG, Koch Group’s Investment In Shiprocket

The Competition Commission of India (CCI) has given its nod to Japan-based MUFG Bank and US-based KDT Venture Holdings to acquire minority stakes in logistics unicorn Shiprocket.

KDT Venture Holdings is a wholly owned subsidiary of Koch Group.

MUFG Bank and US-based Koch Group had approached the CCI in October, seeking approval to pick up minority stakes in the logistics startup.

Founded in 2017 by Saahil Goel, Vishesh Khurana, Akshay Gulati, and Gautam Kapoor, shiprocket is an aggregator of third-party logistics companies. The startup works with 17 courier partners, including Delhivery, FedEx, Aramex, Xpressbees, DTDC, and Shadowfax. 

In August, Shiprocket piloted a D2C marketplace Zop. Inc42 exclusively reported then that Zop was hosting around 200-300 brands across eight categories, including fashion, beauty, electronics, among others. Zop charges a sales commission from brands for listing their products.

Most recently, the startup was among the only two companies selected by the Centre to set up pilot ecommerce export hubs (EEHs) in the country. 

On the financial front, Shiprocket’s revenue jumped 20.8% to INR 1,316 Cr in the financial year ended March 2024 (FY24) from INR 1,089 Cr in the previous fiscal year. 

However, its net loss zoomed about 75% to INR 595 Cr in FY24 from INR 341 Cr in FY23. The primary reason behind this surge in loss was one-time restructuring and integration-related accounting impact of INR 244 Cr related to acquired entities, the startup said. 

It is pertinent to mention that Shiprocket acquired five companies – Wigzo, Pickrr, Glaucus Supply Chain Solutions, Rocketbox and Omuni – in the previous two years or so. Earlier this year, CEO and MD Goel told Inc42 that the startup may acquire more companies in the coming months.

Meanwhile, Shiprocket said that it was profitable in the first two quarters of the ongoing financial year and was on track to achieve profitability in FY25.