Sacra estimates Shiprocket hit $205M in revenue in 2024, growing 21% year-over-year from $170M in 2023. The company's core domestic shipping business contributes approximately 80% of total revenue, while emerging business lines including cross-border shipping, checkout services, and capital solutions account for the remaining 20%.

These emerging business segments are growing rapidly at 75% year-over-year, significantly outpacing the core shipping business. Shiprocket's platform now facilitates $4B in annual GMV across 250,000 merchants, processing over 200 million e-commerce transactions annually.

The company generates revenue through a combination of subscription fees ($24-36/month) and per-shipment charges (approximately $0.28 per 500g). Shiprocket achieved operational profitability on a cash basis in early FY25, with cash EBITDA burn reducing by 48% from Rs 191 crore in FY23 to Rs 100 crore in FY24.

Looking ahead, Shiprocket is targeting a $500M revenue run rate by the end of 2025, driven by expansion in fulfillment services, cross-border shipping, and checkout solutions. The company's focus on digitizing India's 10M offline retailers, particularly in Tier 2-4 cities, represents a significant growth opportunity in India's rapidly expanding e-commerce market.

Shiprocket was last valued at $1.3 billion following a $33 million funding round in August 2022. With $150M of ARR in 2022, that round valued the company at roughly 8.7x forward revenue. The company has raised over $260 million to date, with notable investors including Tribe Capital, Bertelsmann India Investments, and Temasek Holdings.

Shiprocket was founded in 2012 as KartRocket by Saahil Goel, Gautam Kapoor, and Vishesh Khurana, initially aiming to be India's Shopify equivalent. After pivoting in 2017, they found product-market fit as a shipping aggregator for small and medium-sized e-commerce merchants in India who struggled to efficiently manage logistics.

The product connects merchants with a network of courier partners through a single interface, allowing them to compare shipping rates, generate labels, and track deliveries. Merchants simply upload their orders, select their preferred courier based on cost and delivery time, and Shiprocket handles the rest - from pickup coordination to delivery tracking.

Shiprocket's platform integrates directly with popular e-commerce platforms and marketplaces, automatically importing orders and syncing inventory. The system uses AI to recommend the optimal courier partner based on destination, package weight, and historical performance data. For merchants dealing with cash-on-delivery orders, Shiprocket provides address verification and automated remittance of collected payments.

The company has expanded its offering to include fulfillment services through a network of warehouses, enabling merchants to store inventory closer to their customers. Their checkout solution integrates with merchant websites to provide a seamless payment experience, while their cross-border shipping service helps Indian merchants reach international customers.

Shiprocket is an e-commerce enablement platform that provides integrated logistics, fulfillment, and checkout solutions for Indian D2C brands and SMBs. The company primarily monetizes through a combination of subscription fees ($24-36/month) and per-shipment charges (approximately $0.28 per 500g), with additional revenue streams from fulfillment services and financial products.

The platform serves as an aggregator, connecting merchants with over 17 courier partners and providing access to 26,000+ pin codes across India. This model allows small merchants to access shipping rates and services typically only available to large-volume shippers, while Shiprocket captures margin on each transaction.

Shiprocket's competitive advantage stems from its vertically integrated approach, offering merchants a complete e-commerce operating system. Beyond basic shipping, the platform provides working capital solutions, warehouse fulfillment services, and checkout integration. This comprehensive suite enables significant cross-sell opportunities and deeper merchant relationships.

The company's strategic focus on India's unique market characteristics, such as high cash-on-delivery rates and address standardization challenges, has allowed it to build specialized solutions that outperform generic global platforms. Shiprocket's platform reduces return-to-origin rates from the industry standard of 25% to approximately 15%, creating measurable value for merchants.

Shiprocket operates in India's e-commerce enablement market, which includes logistics aggregation, fulfillment services, and merchant solutions. The competitive landscape spans several distinct segments:

Major carriers like Delhivery ($1.04B revenue) dominate direct shipping relationships with large enterprises. Delhivery recently launched Delhivery One to target SMBs, directly competing with Shiprocket's core offering. BlueDart and other national carriers maintain their own digital platforms but struggle with serving long-tail merchants effectively.

Pickrr (acquired by Shiprocket) and Vamaship focus on courier aggregation and shipping optimization. These players typically serve smaller merchants but lack Shiprocket's breadth of services across fulfillment, checkout, and financing. Amazon's logistics arm theoretically competes but faces regulatory restrictions on foreign ownership in India.

New entrants are combining logistics with financial services. Companies like Shopify India offer integrated commerce solutions but struggle with the Indian market's preference for one-time payments over subscriptions. Local players like Kartrocket (Shiprocket's predecessor) focus on storefront solutions but show sublinear LTV growth compared to logistics-first approaches.

The market remains highly fragmented, with RTO rates averaging 20-25% for most providers. Shiprocket's vertical integration strategy - combining shipping, fulfillment, and checkout - addresses systematic inefficiencies that individual courier companies are not incentivized to solve. The company's focus on tier 2-4 cities and social commerce merchants (70-80% of demand originates from Meta platforms) differentiates it from enterprise-focused competitors.

Shiprocket has tailwinds from India's rapidly growing e-commerce market and the digitization of SMB merchants, with opportunities to expand into adjacent markets like embedded finance, cross-border commerce, and hyperlocal delivery infrastructure.

India's e-commerce market has grown from $22B in 2018 to $123B in 2024, yet only 40% of the population shops online. With 10 million offline retailers and 2 million already active on digital channels, Shiprocket's core shipping and fulfillment business has significant room for expansion. The company's network of 50 fulfillment centers positions it to capture value from the growing direct-to-consumer (D2C) brand ecosystem.

With 90% of transactions in Tier 2-4 cities being Cash on Delivery, Shiprocket can leverage its position to offer working capital solutions and payment services to merchants. The company's data on merchant performance enables better underwriting decisions than traditional lenders. Shiprocket Capital and checkout solutions represent early steps into this $200B+ opportunity.

India's e-commerce export market currently stands at $23B and aims to reach $200B. Shiprocket's cross-border shipping services and emerging hyperlocal delivery network (Shiprocket Quick) position it to capture value from both international trade and rapid local delivery. The company's platform could become the operating system for India's fragmented logistics infrastructure, similar to how Stripe evolved from payments to a comprehensive financial infrastructure platform.

Merchant retention in emerging business lines: While Shiprocket's core shipping business shows strong cohort retention, their expansion into checkout, fulfillment, and cross-border services may face higher churn rates as merchants experiment with multiple solutions.

The 75% YoY growth in these emerging segments could mask underlying retention challenges that only become apparent as the segments mature. This is particularly critical as these services represent Shiprocket's path to higher margins and reduced dependence on shipping revenue.

Carrier disintermediation: As Shiprocket gains market power with 5% of India's e-commerce volume, major carriers may resist being commoditized and attempt to build direct relationships with merchants.

Some carriers are already launching self-serve platforms targeting SMBs, which could erode Shiprocket's value proposition of simplified carrier access and management.

Working capital exposure: Shiprocket's expansion into merchant financing through Shiprocket Capital introduces credit risk exposure in a market where 90% of transactions in Tier 2-4 cities are Cash on Delivery.

High return rates (25%) combined with lending to merchants with limited credit history could lead to significant losses if default rates spike during economic downturns.