Logistics platform Shiprocket turns profitable, wants to become Amazon Prime for non-prime members

  • In an interview with Business Insider, Akshay Ghulati the chief business officer of Shiprocket shares how the company achieved profitability.
  • The company currently has an annualised revenue run-rate of between of $25-30 million.
  • The startup has grown riding the e-commerce wave but it’s not much affected by the losses of the sector.
Indian logistics startups have been buzzing this year as Delhivery and Rivigo turned unicorns. But that’s not the only good news. Yet another startup Shiprocket has turned profitable, the company exclusively told Business Insider. It currently has an annualised revenue run-rate between of $25-30 million.

In an interview with Business Insider, Akshay Ghulati the chief business officer of Shiprocket explained how the company grew even as the sector it caters to – e-commerce – is making losses.

“We are aiming to grow by 3.5 times by the end of this financial year. This has also been a landmark year because the growth has opened up a lot of new opportunities,” said Ghulati.

This year, they have seen a lot of traction grow from direct-to-consumer brands. Over 100 brands that were unheard for two years, have become popular with massive orders. As many as 60% of its orders come from social commerce (people selling from Facebook, Instagram, WhatsApp), 30% from D2C and 10% from Amazon or other e-commerce platforms.

“In the D2C space, brands are dealing with the consumer experience. So, we have become a very important partner and not just a vendor anymore. The discussion is not about how can you do it cheaper but how can you do better,” said Ghulati.

Shiprocket functions as a technology logistics partner. It doesn’t own a fleet but handles everything once an order is placed – from giving the client options for deliveries, to tracking and even communicating with the consumer.

“We are looking at ways of faster deliveries where we can be the Amazon Prime for the non-Amazon prime customers,” Ghulati said with a laugh.

During the festive season, Shiprocket clocked in 1.5 million deliveries in a month.

The startup has grown riding the e-commerce wave but it’s not affected by the losses of the sector.

“E-commerce is a loss making industry because of discounting. We are in a phase of e-commerce growth where its about adoption – getting people to trust buying online. In India, we went from complete unorganised retail to suddenly buying online. Tier 1 and 2 cities are coming out of that phase – where they aren’t buying something just because it’s cheaper,” he said.

And it is in Bharat – the next 200 million internet users where lies the real opportunity. Ghulati believes that logistics will play a large part in the growth of Bharat as it will provide faster ways to reach consumers in far off places.

Shiprocket currently delivers to 26,000 pincodes in India. They deliver across 220 countries.
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