Delhi NCR based ecommerce shipping platform, Shiprocket, has acquired B2B logistics platform, Rocketbox for an undisclosed amount. This is the second acquisition by the logistics startup in 2022.
As part of the deal, Rocketbox founders will be joining the Shiprocket leadership team and ‘Rocketbox’ will be rebranded as ‘Rocketbox by Shiprocket’.
The acquisition will help Shiprocket lower shipping costs and smoothen end-to-end customer experience on its platform. The move will also enhance Shiprocket’s existing infrastructure and product stack for D2C customers and SMEs.
Shiprocket CEO and cofounder Saahil Goel, said, “Rocketbox has a cutting-edge platform which extends Shiprocket’s capabilities to B2B use-cases as well as bulk movement using cargo carriers. The platform brings along a host of features which will help retailers save time, cost, and effort, allowing a smooth end-to-end logistics experience.”
Shiprocket was founded in 2017 by Saahil Goel, Gautam Kapoor and Vishesh Khurana. The startup says that it generates a GMV of over $1.5 Bn annually and is growing three times year-on-year. Shiprocket claims that it delivers to 66 Mn consumers annually across the globe.
The logistics startup has so far raised over $354 Mn in funding. Its latest Series E funding round was led by Lightrock, Temasek Holdings and Zomato where it scooped up over $185 Mn.
Meanwhile, Rocketbox was launched in 2015 by a clutch of entrepreneurs including Hasan Kumar A, Pooja Bhatt, Raghav Singhania, Ramana Venkat and Vinod Kumar Reddy Gandra. The startup has over the years diversified and rolled out a slew of services including an application suite catering to the logistics sector.
Raghav Singhania, cofounder and CEO of Rocketbox, said, “We are excited to be partnering with Shiprocket to continue to build our product and service offering at Rocketbox. When we met Saahil and Gautam we immediately realized that it was the right fit for us as a team as we both have similar objectives of making the fulfilment experience of SMEs seamless with an inherent objective of disrupting the status quo.”
This is the second acquisition of Shiprocket in a fortnight. Barely a week ago, the startup acquired a 75% stake in customer data platform (CDP) Wigzo Tech for an undisclosed amount. According to reports, the deal was pegged at around $20 Mn – $25 Mn.
Despite a bumpy start, the year 2021 brought happy cheer for the logistics sector. A Redseer report stated that inter-city logistics spending in the country stood at $209 Bn in 2021. The report also adds that the road logistics market in India is set to grow at a CAGR of 8% in the next five years that will make it a $330 Bn market by 2025.
This was reflected in the investments that flowed into the sector last year. Private equity and venture capital investment in logistics companies jumped by 50 per cent in 2021. Large ticket funding went to technology-led logistics startups such as trucking marketplace RAAHO, FarEye, a SaaS logistics platform, and Shiprocket. In totality, Indian logistics startups raised about $1.4 Bn in funding across 51 deals in 2021 alone, a massive jump from $260 Mn raised in 2020.
The trend continues in 2022 too. Earlier this month too, IPO-bound Delhivery invested in Falcon Autotech, a Noida-based maker of warehousing automation products. VC firm Capital A also made a Pre-Series A investment in Bengaluru-based B2B logistics tech startup RoaDo. Another online logistics platform, ShipNext Solutions, raised INR 4.5 Cr as part of its Pre-Series A funding led by Kerala-based Group Meeran.
Earlier today, the Securities and Exchange Board of India (SEBI) approved logistics unicorn Delhivery’s INR 7,640 Cr initial public offering (IPO).
Despite COVID-19 creating supply-chain bottlenecks, startups have risen up to the occasion and proven themselves. This was reflected in the investments that poured into the logistics sector and it looks like that will be the trend for the foreseeable future.