Shiprocket consolidates with Logistic SaaS and tech platform Pickrr through acquisition in $200mn Deal

Date of Announcement: Wednesday, 19 June, 2022

Acquiring Company: Shiprocket

Acquiree Company: Pickrr

Size of Deal: $200 Million (Rs.1,560 Crores)

Mode: Cash and Stock

Stake/Dilution: 80% (to be 100% acquired in few months)

Highlights of the Deal:

• Pickrr is an ‘end-to-end logistics service’ founded in assisting anyone from a small business to a D2C brand to set-up their e-commerce operations seamlessly. Founded in 2015 by Gaurav Mangla (IIT Guwahati alumni), Ankit Kaushik (IITKanpur alumni), and Rhitiman Majumder (Ex-Stayzilla) will receive shares in Shiprocket, while financial investors will receive cash exit.
• Pickrr founders together 40% in the company prior to the deal.
• Pickrr’s investors walked home with 4-5 times returns in less than a year since it closed last funding round of $12 Mn in 2021
• While Shiprocket has already purchased roughly 80% of Pickrr, the contract is for a 100% stake acquisition to be completed over next few months.

Purpose of Consolidation:

• When funding winter is around, Shiprocket has moved towards market consolidation which will enhance not only its internal capabilities but enhance consumer portfolio and stronger market valuation, becoming a leading brand in delivery and after sale services.
• According to founders. Pickrr was focused on relatively bigger D2C for their logistics needs. However, Shiprocket is known for its service provision to small D2C brands and businesses. Hence, acquisition will prove to be complementary for overall growth.
• Building a strong e-commerce logistics ecosystem. The combined platform will be a boost to the ecosystem including shipping partners, warehouse providers, shopping carts, marketplaces, ERP systems, payment players, identity and credit information providers.

In an interview with e-news, Saahil Goel, Co-Founder and CEO, Shiprocket said, “We are excited to have Pickrr as part of the Shiprocket family, combining the two largest platforms enabling direct commerce. Together, we will define the future of e-commerce enablement in India, creating the most comprehensive enablement software stack that every retailer can use to drive success in their digital journeys. This will add about 40% extra volume to Shiprocket's total volumes, which after the merger will be about 10 million a month.

About Shiprocket: Shiprocket is profitable e-commerce shipping platform that enables fast and cost-effective shipping for D2C (direct to consumer) retailers. It was founded by Saahil Goel, Gautam Kapoor and Vishesh Khurana in 2012. For Shiprocket, Pickrr is its fourth acquisition this year. It earlier acquired Glaucus, Rocketbox and Wigzo. Company closed its latest funding round of $185 million led by Zomato and Temasek valuing it ~$900-950 million with Moore Strategic Ventures, and other unicorns as investors.

Company has built about 1.5 million sq ft of aggregated warehouse space across the country which it first started building in 2020. And has warehouses in 35 locations through many partners. Company clocked a revenue of Rs 364 crore in fiscal 2020-21 from Rs 161 crore in the previous financial year. It posted a net profit of Rs 12.4 crore during the period as compared to Rs 10 crore during the same period the previous fiscal.

About Pickrr: Pickrr is an end-to-end logistics and technology platform founded in 2015 for e-commerce marketplace sellers, resellers, SMEs and D2C brands. Pickrr raised $12 million in a Series B funding round at an undisclosed valuation. Per industry, Company has given 4 times return to investors within a year of its latest round. As per founders, in year 2021, company grew by 3X compared to 2020. Though the revenue for FY22 is not in public domain, it is expected that company achieved revenue run rate of ~$50 million in FY2022.

Shiprocket being an aggregator platform and offers SaaS solutions, with latest acquisitions, it is emerging as a strong competitor to delivery companies like Delhivery, Xpressbees and EcomExpress.

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