Shiprocket enhances Employee Stock Ownership Program with Significant investment
Shiprocket, a leading player in the logistics adn supply chain sector, has announced a significant enhancement to it’s employee stock ownership plan (ESOP), amounting to ₹134 crore (approximately $16 million). this marks the first major update to its ESOP structure this year.The board of directors has approved a special resolution that introduces 31,011 new ESOPs into the existing framework, increasing the total number of options available to 1,74,440. This advancement was officially disclosed in a filing with the Registrar of Companies (RoC).
Key Developments:
- The upgrade raises Shiprocket’s overall ESOP valuation to approximately ₹757 crore (nearly $90 million).
- The newly added ESOPs are valued at ₹135 crore or $16 million.
- Shareholders have agreed to rename the ESOP trust; it will now be known as “Shiprocket Employee ESOP Trust,” replacing its former title “Bigfoot Employee ESOP Trust,” according to another company resolution.
To date, shiprocket has successfully secured over $300 million in funding and currently boasts an extraordinary valuation of $1.23 billion following an investment round that included an $11 million contribution from McKinsey. Reports from various startup intelligence sources indicate that Bertelsmann Nederland B.V is recognised as the largest external shareholder with 25.1%, while Tribe Capital holds 15.80%. other notable investors include Zomato, Temasek, Lightrock, and PayPal.
In its fiscal year ending March 2024, Shiprocket demonstrated remarkable growth with revenue increasing by 21% year-on-year to reach ₹1,316 crore; however, losses during this period totalled ₹595 crore.
The company faces intense competition from Unicommerce—bolstered by its acquisition of Shipway—and other challengers like shipyari within the logistics arena. Insights suggest that Shiprocket is preparing for an initial public offering (IPO) anticipated in 2025. The firm aims to raise between ₹2,000 and ₹2,500 crore through this initiative. With this significant investment and enhancement of its employee stock ownership program underway, Shiprocket is strategically positioned for ongoing growth and success within the logistics industry.