(Commonwealth) _ Shiprocket, an e-commerce logistics and shipping software company, recently introduced Shiprocket Capital, aiming to facilitate up to Rs 10 crore in revenue-based financing for small and medium businesses (SMBs) operating online. Over the next year, they aim to enable approximately Rs 100 crore in capital to support these SMBs by December 2024. This funding, offered without collateral requirements or equity dilution, is designed to help businesses enhance inventory, bolster marketing efforts, increase production capacities, or venture into new markets. The repayment structure for Shiprocket’s financing is structured around a one-time fee coupled with a percentage of the revenue generated by the small and medium businesses (SMBs), a framework detailed on Shiprocket’s official website. Emphasizing the hurdles encountered by e-commerce entrepreneurs when relying on conventional financing approaches, Shiprocket has underscored the importance and impact of revenue-based financing. Studies and industry reports indicate that this alternative financing model can potentially elevate the growth trajectory of startups by a significant margin, estimated to be as high as 30%. Shiprocket Capital is strategically positioned to harness this potential growth leverage for the benefit of the 300,000 merchants affiliated with its platform. These merchants collectively contribute to a Gross Merchandise Value (GMV) surpassing 30,000 crores, highlighting the substantial scale and reach of Shiprocket’s initiative within the e-commerce landscape.
The allocation of capital will be orchestrated in collaboration with esteemed non-banking financial companies (NBFCs) such as InCred, Indifi, Klub, Stride, Vedfin, Velocity, and GetVantage. Shiprocket’s objective is to streamline the capital provision process, aiming to disburse funds within a swift two-day timeframe upon the submission of requisite documentation by the small and medium businesses (SMBs). Saahil Goel, the Co-founder and CEO of Shiprocket, highlighted India’s ambitious aspiration of nurturing a vibrant ecosystem hosting 1 million eCommerce enterprises by the year 2025. Positioned as an enabler within the e-commerce domain, Shiprocket endeavors to empower these businesses by offering adaptable capital solutions. Through the conduit of Shiprocket Capital, the company seeks to forge a partnership for growth, aligning itself as a strategic ally committed to the advancement and success of these burgeoning e-commerce entities. Established in 2017, Shiprocket offers a technology stack that assists retailers in integrating their shopping websites with the platform’s multi-carrier API, compatible with Shopify, Magento, WooCommerce, Zoho, and other platforms. This integration aids in managing orders, printing, shipping labels, and tracking information from various providers, including handling Cash on Delivery orders and payment reconciliation. In addition to their core shipping logistics, Shiprocket provides an expansive array of services encompassing marketing automation, tailored financing solutions, influencer marketing programs, diverse fulfillment options, and comprehensive brand-building solutions. These initiatives are meticulously designed to address the dynamic and evolving requirements of e-commerce businesses, aiming to offer a well-rounded suite of services tailored for sustained growth and overall success within the competitive landscape. Shiprocket’s commitment extends beyond conventional shipping logistics, encompassing an ecosystem of support to nurture and propel e-commerce enterprises. Their marketing automation tools facilitate streamlined and efficient marketing efforts, while the specialized financing solutions cater to the unique financial needs of each business, ensuring access to adaptable capital for expansion and innovation. The inclusion of influencer marketing programs aligns with contemporary strategies, leveraging influential voices to amplify brand visibility and engagement. Moreover, Shiprocket’s diverse fulfillment options ensure flexibility in meeting customer demands, while their comprehensive brand-building solutions empower businesses to establish and fortify their brand identity in the market. In essence, Shiprocket’s suite of services is structured to cater comprehensively to the multifaceted needs of e-commerce businesses, positioning the company as a strategic partner dedicated to fostering growth, innovation, and enduring success in the ever-evolving digital marketplace.
