Tribe Capital Doubling Down On Shiprocket With $75 Mn Infusion

SUMMARY

Tribe's cofounder Arjun Sethi said that the SPV will not only invest in companies but also engage in building and acquiring them in India

The SPV is set to invest $75 Mn in Shiprocket, where Tribe Capital already holds the largest stake

The SPV, established as a Gurugram-based entity, is co-owned by Sethi, Shiprocket cofounder Vishesh Khurana, and Raj Snehil Juneja, an investor in Indian startups

Silicon Valley-based Tribe Capital is ramping up its investment in logistics startup shiprocket through its newly launched special purpose vehicle (SPV) in India.

Tribe’s cofounder Arjun Sethi said that the SPV will not only invest in companies but also engage in building and acquiring them in India, marking a departure from the conventional approach of global venture capital firms operating in the country.

The SPV is set to invest $75 Mn in Shiprocket, where Tribe Capital already holds the largest stake, ET reported. According to Sethi, the transaction will be completed in the coming weeks.

The SPV, established as a Gurugram-based entity, is co-owned by Sethi, Shiprocket cofounder Vishesh Khurana, and Raj Snehil Juneja, an investor in Indian startups.

Tribe Capital India Management Pvt Ltd, the designated India asset management company, is set to inject the majority of funds into Shiprocket’s ongoing funding round. This fundraising initiative is anticipated to involve both primary and secondary transactions, potentially valuing the startup at $1.2 Bn.

Tribe Capital Management will oversee various entities, including the India AIF, named Tribe India Venture AIF Fund I. Initially, the India AIF will share an 80% overlap with Tribe Capital’s global fund in terms of limited partners or sponsors. Sethi mentioned that the AIF will also enlist general partners to contribute to and manage the investments.

Last year, Tribe Capital said it was planning to set up a $250 Mn alternate investment fund (AIF) focused on India.

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

Shiprocket has raised a total funding of over $270 Mn till date and counts the likes of Temasek, Bertelsmann, Moore Strategic Ventures, PayPal and March Capital among its investors.

The company’s operating revenue jumped 78% to INR 1,089 Cr in FY23 from INR 611 Cr in the previous fiscal year. However, net loss widened 3.6X to INR 341 Cr during the year under review from INR 93.1 Cr in FY22.

The startup attributed the rise in its loss to the acquisition of Omuni for INR 200 Cr and its rival Pickrr for $200 Mn.