Shiprocket’s FY23 Revenue Crosses INR 1,000 Cr Mark, Reports 3.6X Surge In Loss

Delhi NCR-based logistics unicorn shiprocket has witnessed a 78% increase in its operating revenue in the financial year ending on March 31, 2023. The Zomato-backed logistics startup reported an operating revenue of INR 1,089 Cr, a 1.7X upswing from INR 611 Cr it had reported in the previous fiscal year.

The startup saw its net loss widen by 3.6X on the back of its multiple acquisitions. The logistics unicorn reported a net loss of INR 341 Cr in FY23, a 266% surge from INR 93.1 Cr it had reported in the previous fiscal year. 

The startup blamed its two acquisitions – Omuni for INR 200 Cr and one of its rivals Pickrr for $200 Mn in FY23 – the primary reason for its more than 3-fold increase in loss. 

Additionally, the startup further claimed that FY23 was the first complete operational year for its other acquired businesses such as Wigzo and Glaucus which contributed to Shiprocket’s growing losses. 

Shiprocket said that its parent entity – Bigfoot Retail Private Limited – absorbed a loss worth INR 184 Cr in the completion of these acquisitions. The parent entity further incurred a loss of INR 88 Cr as ESOP cost and INR 71 Cr as an exceptional cost for the accounting treatment for some of its investments. 

Shiprocket has been on an acquisition spree since the beginning of 2022. After bagging $185 Mn from Zomato and Temasek at the end of 2021, Shiprocket went on to acquire Wigzo, Rocketbox, Glaucus, Pickrr, and Omuni in quick succession to expand its product offerings. 

In August of this year, Inc42 had exclusively reported that Omuni laid off around 60-70 employees, or nearly 35% of its workforce, in a restructuring exercise undertaken by Shiprocket according to Inc42 sources.

Multiple sources told Inc42 that Omuni’s performance as a business unit didn’t match the expectations set during the acquisition.

It is well understood that Shiprocket, which is eyeing for an IPO is trying to put its house in order by dissolving teams in its acquired business to control its loss. 

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

Earlier last month, Inc42 exclusively reported that Shiprocket has raised around $10 Mn from  McKinsey & Company in a strategic funding round. It is anticipated that McKinsey coming to the captable will help Shiprocket in taking critical strategic decisions before going to public bourses. 

The logistics unicorn has raised around $270 Mn in funding and counts Temasek, Bertelsmann, Moore Strategic Ventures, PayPal, and March Capital among its backers. 

Note: Inc42 hasn’t seen the FY23 financial statement of Shiprocket. We shall be doing a separate story from the financial statement later.