Consequently, as a result of adding to its stack inorganically, Shiprocket’s net loss widened to Rs 341 crore during the year ended March 31, from Rs 93.1 crore in the previous fiscal year.
Explaining the 3.6-fold increase in its loss, the company said that it acquired two businesses during FY23: retail software-as-a-service (SaaS) platform Omuni, from Arvind Internet, and ecommerce logistics solutions player Pickrr. FY23 was also the first full year of operations for the acquisitions made by the company in the previous fiscal year. These were omnichannel user engagement platform Wigzo and supply chain management firm Glaucus.
Shiprocket said that its parent company, Bigfoot Retail Solutions, absorbed losses to the tune of Rs 184 crore from fulfilment and these acquisitions. It also incurred a significant employee stock option (Esop) cost of Rs 88 crore, and exceptional costs of Rs 71 crore arising from the accounting treatment for some of its investments.
“Today we power over Rs 25,000 crore of annual sales for over 100,000 merchants and span ecommerce transactions from marketing, payments, checkout, (to) warehousing, shipping and customer experience,” said Saahil Goel, cofounder and chief executive of Shiprocket. The company’s gross merchandise value (GMV) increased by 1.9 times compared to last year.
Goel said that Shiprocket’s core business continues to be profitable and the operating losses at most of its acquired companies have been “drastically reduced”.
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“FY23 gave us the rare opportunity to build Shiprocket at the trifecta of positive market forces, unique macroeconomic conditions, and bring to life innovative technology. We have built solid unit economics with a razor sharp focus on strong business fundamentals, implementing the right go-to-market strategy, and placing supreme importance on the success of our merchants,” he said, adding that the company was now looking at enabling cross-border commerce for its next leg of expansion.Founded in 2012, Shiprocket offers tech-enabled warehousing solutions for both retail and e-commerce brands. The company has more than 42 warehouses across India, including three new warehouse facilities launched in Gurugram, Mumbai and Bengaluru in August 2022.
On August 17 last year, the company became a unicorn after closing a $32 million round from existing investors Temasek and Lightrock India. This round led to Shiprocket being valued at $1.3 billion. Earlier this year, the company raised $11 million from McKinsey at the same valuation.
Apart from shipping, Shiprocket also offers technology solutions to assist retailers and brands in integrating their sites with platforms such as Shopify and others along with inventory and order management. According to the company, there has been a significant year-on-year growth in non-shipping revenue.
This year, Shiprocket partnered with the government by collaborating with India Post and the Open Network for Digital Commerce (ONDC).