Logistics startup Shiprocket said on Wednesday its acquisition of Pickrr, an e-commerce SaaS platform, will enable it handle about 10 million shipments monthly—a growth of 40 percent.
Shiprocket is acquiring a majority stake in Pickrr for an estimated $200 million in cash, stock and earn-out.
Saahil Goel, Shiprocket’s founder and chief executive told ‘Business Standard’, the acquisition would be complementary to his company’s capabilities as Pickrr’s expertise is helping large direct commerce brands in logistics. Shiprocket had created a niche among small and medium businesses and D2C brands.
Launched in 2017, Shiprocket assists more than 70,000 online sellers in shipping their products across the country.
In 2021, the company raised $185 million from Zomato and Temasek, among others. Shiprocket is an acquisition spree this year, buying majority stakes in Glaucus Supply Chain, Wigzo, B2B logistics platform Rocketbox and SaaS-based Logibricks.
According to a study by UPS, small and medium businesses selling online consider e-commerce as a priority area of growth for their business. The survey by one of the world’s largest logistics companies said that such businesses were interested in growing their e-commerce exports.
“Today, brands aren’t limited to marketing their products through online marketplaces or offline channels,” said Saahil Goel, co-founder and CEO of Shiprocket. “Many are developing their own e-commerce stores or apps with the aim of capturing orders and delivering them with the help of e-commerce enablers straight to the customer,” Goel said.
Incumbent players (such as Unilever, Marico, Tata Consumer Products, and ITC) are either acquiring prominent D2C brands or choosing the organic route of launching their own brands online and building their own D2C platforms.
About D2C brands, the report said they need to strengthen product innovation and revamp manufacturing and sourcing strategies to become market leaders.
Source: Business-Standard