Bengaluru: As logistics aggregator Shiprocket prepares to launch its initial public offering (IPO) next week, managing director and CEO Saahil Goel is betting on non-shipping services to drive the company's next phase of growth. Offerings like cross-border commerce, omnichannel software, checkout tools, and marketing solutions now generate over a quarter of total revenue and are growing nearly three times faster than its core business.

These emerging tech solutions accounted for more than 25% of revenue in FY26, surging 65% year-on-year compared to the company's overall revenue growth of about 25% and 14% growth in the core shipping business. The shift underscores Shiprocket's transition from a logistics enabler into a broader e-commerce technology platform.

“It’s the same merchant transaction. Earlier, we only handled shipping. Today, we can improve checkout, help a merchant in Indore sell to customers in Indianapolis, or enable marketing. We’re now monetizing multiple margin pools from the same transaction,” Goel told Mint in an interview.

The strategy is important for Shiprocket as competition intensifies in merchant logistics. Rivals including Amazon Shipping, Delhivery, Blue Dart and XpressBees have all expanded their direct merchant offerings over the years, making logistics infrastructure increasingly competitive.

Goel, however, argued that Shiprocket’s differentiation lies in solving a much broader set of merchant problems than merely moving parcels. “Our customer isn’t someone sending a parcel from point A to point B. Our customer is anyone trying to build and scale a successful business. That’s a fundamentally different DNA,” he said on Thursday, adding that micro, small and medium businesses remain pivotal to Shiprocket’s shipment volumes.

The company was founded in 2012 by Saahil Goel, Gautam Kapoor and Vishesh Khurana. It has fulfilled more than 730 million shipments since 2016, and processed around 200 million orders in FY26 alone. Having served nearly 150 million consumers, the company estimates that one in every 10 Indians has now completed a transaction powered by Shiprocket.

India's express logistics industry is projected to grow to $18-22 billion by FY30 from $9 billion in FY25, KPMG estimates.

IPO time

The company is set to open its ₹1,618-crore IPO for subscription on 12 August at a price band of ₹92-97 per share. The offering comprises a fresh issue worth up to ₹885.5 crore and an offer for sale (OFS) of up to ₹731.9 crore by existing shareholders, including investors and founders.

The company will use the IPO proceeds to develop technology, including AI capabilities, make acquisitions and strategic investments, expand its fulfillment and dark-store network, and for general corporate purposes.

The issue size is materially lower than the ₹2,342 crore Shiprocket proposed in the draft prospectus it filed in December. Goel attributed the reduction to stronger profitability and cash generation, saying the business generated ₹53 crore of cash flow in FY26 while substantially improving its financial position. He also said several existing investors chose to sell fewer shares. These include Lightrock, Tribe Capital, Moore Strategic Ventures and Agility International Investment, as well as individual shareholders Gautam Kapoor, Saahil Goel and Vishesh Khurana.

Shiprocket reported operating revenue of ₹2,024 crore in FY26, up from ₹1,632 crore the previous year. While its restated net loss remained flat at ₹79.2 crore due to non-cash expenses, the company turned operating cash flow and Ebitda-positive during the fiscal, generating ₹53 crore in operating cash flow.

At the upper price band of ₹97 per share, the IPO implies a market capitalization of around ₹7,000 crore—a step down from its peak private valuation of ₹10,000 crore, set during a December 2024 funding round from Koch Group, MUFG, and Huddle Ventures. The markdown mirrors a broader trend of tech companies setting conservative public market pricing, with Goel noting that Shiprocket is prioritizing long-term value creation over a high listing valuation.

“We’re building our business and solving merchants’ problems. Valuation is an investor topic. We’d rather have the right long-term partners, and even if there’s money left on the table for investors, that’s okay because we’re building for the long term,” Goel said.

Tech tonic

Technology, particularly artificial intelligence (AI), is expected to play a central role in the next phase of expansion. Goel said the company has already begun deploying AI extensively across software development, customer support and internal analytics, and recently launched an agentic version of its platform that aims to automate repetitive tasks for merchants, leaving them free to focus on customers, margins and marketing.

“We’re already using AI extensively to write code, handle customer support and surface insights. Our teams can spend less time generating insights and more time acting on them,” he said.

Unlike traditional businesses that invest heavily in physical assets, Shiprocket’s investments are primarily directed towards engineering and product development. “In our business, you build the technology first and monetise it later. That’s a playbook we’ve repeated multiple times, and we’re confident it will continue to work because the problems we're solving come directly from merchants,” Goel said.

Focus on outcomes

While several internet companies such as Flipkart, Moglix and Udaan have expanded into financial services to improve monetisation in recent months, Goel said Shiprocket’s fintech offerings remain focused on helping merchants grow rather than becoming a standalone revenue engine.

The company currently offers faster settlement of cash-on-delivery payments, embedded insurance and financing through partner non-banking financial companies (NBFCs) to increase merchants’ access to working capital. “Our objective isn’t to monetise financial services directly. It’s to give merchants better access to capital so they can grow faster. As they grow, we process more transactions,” he said.

Looking beyond the IPO, Goel said investors should focus less on quarterly fluctuations and more on three operating metrics that have remained consistent throughout Shiprocket’s evolution: the number of merchants transacting on the platform, the number of transactions processed, and contribution and revenue generated per transaction. “These three metrics tell you exactly what’s happening in the business. Multiply them together and you understand both revenue and margins,” he said.

Bengaluru: As logistics aggregator Shiprocket prepares to launch its initial public offering (IPO) next week, managing director and CEO Saahil Goel is betting on non-shipping services to drive the company's next phase of growth. Offerings like cross-border commerce, omnichannel software, checkout tools, and marketing solutions now generate over a quarter of total revenue and are growing nearly three times faster than its core business.

These emerging tech solutions accounted for more than 25% of revenue in FY26, surging 65% year-on-year compared to the company's overall revenue growth of about 25% and 14% growth in the core shipping business. The shift underscores Shiprocket's transition from a logistics enabler into a broader e-commerce technology platform.

“It’s the same merchant transaction. Earlier, we only handled shipping. Today, we can improve checkout, help a merchant in Indore sell to customers in Indianapolis, or enable marketing. We’re now monetizing multiple margin pools from the same transaction,” Goel told Mint in an interview.

The strategy is important for Shiprocket as competition intensifies in merchant logistics. Rivals including Amazon Shipping, Delhivery, Blue Dart and XpressBees have all expanded their direct merchant offerings over the years, making logistics infrastructure increasingly competitive.

Goel, however, argued that Shiprocket’s differentiation lies in solving a much broader set of merchant problems than merely moving parcels. “Our customer isn’t someone sending a parcel from point A to point B. Our customer is anyone trying to build and scale a successful business. That’s a fundamentally different DNA,” he said on Thursday, adding that micro, small and medium businesses remain pivotal to Shiprocket’s shipment volumes.

The company was founded in 2012 by Saahil Goel, Gautam Kapoor and Vishesh Khurana. It has fulfilled more than 730 million shipments since 2016, and processed around 200 million orders in FY26 alone. Having served nearly 150 million consumers, the company estimates that one in every 10 Indians has now completed a transaction powered by Shiprocket.

India's express logistics industry is projected to grow to $18-22 billion by FY30 from $9 billion in FY25, KPMG estimates.

IPO time

The company is set to open its ₹1,618-crore IPO for subscription on 12 August at a price band of ₹92-97 per share. The offering comprises a fresh issue worth up to ₹885.5 crore and an offer for sale (OFS) of up to ₹731.9 crore by existing shareholders, including investors and founders.

The company will use the IPO proceeds to develop technology, including AI capabilities, make acquisitions and strategic investments, expand its fulfillment and dark-store network, and for general corporate purposes.

The issue size is materially lower than the ₹2,342 crore Shiprocket proposed in the draft prospectus it filed in December. Goel attributed the reduction to stronger profitability and cash generation, saying the business generated ₹53 crore of cash flow in FY26 while substantially improving its financial position. He also said several existing investors chose to sell fewer shares. These include Lightrock, Tribe Capital, Moore Strategic Ventures and Agility International Investment, as well as individual shareholders Gautam Kapoor, Saahil Goel and Vishesh Khurana.

Shiprocket reported operating revenue of ₹2,024 crore in FY26, up from ₹1,632 crore the previous year. While its restated net loss remained flat at ₹79.2 crore due to non-cash expenses, the company turned operating cash flow and Ebitda-positive during the fiscal, generating ₹53 crore in operating cash flow.

At the upper price band of ₹97 per share, the IPO implies a market capitalization of around ₹7,000 crore—a step down from its peak private valuation of ₹10,000 crore, set during a December 2024 funding round from Koch Group, MUFG, and Huddle Ventures. The markdown mirrors a broader trend of tech companies setting conservative public market pricing, with Goel noting that Shiprocket is prioritizing long-term value creation over a high listing valuation.

“We’re building our business and solving merchants’ problems. Valuation is an investor topic. We’d rather have the right long-term partners, and even if there’s money left on the table for investors, that’s okay because we’re building for the long term,” Goel said.

Tech tonic

Technology, particularly artificial intelligence (AI), is expected to play a central role in the next phase of expansion. Goel said the company has already begun deploying AI extensively across software development, customer support and internal analytics, and recently launched an agentic version of its platform that aims to automate repetitive tasks for merchants, leaving them free to focus on customers, margins and marketing.

“We’re already using AI extensively to write code, handle customer support and surface insights. Our teams can spend less time generating insights and more time acting on them,” he said.

Unlike traditional businesses that invest heavily in physical assets, Shiprocket’s investments are primarily directed towards engineering and product development. “In our business, you build the technology first and monetise it later. That’s a playbook we’ve repeated multiple times, and we’re confident it will continue to work because the problems we're solving come directly from merchants,” Goel said.

Focus on outcomes

While several internet companies such as Flipkart, Moglix and Udaan have expanded into financial services to improve monetisation in recent months, Goel said Shiprocket’s fintech offerings remain focused on helping merchants grow rather than becoming a standalone revenue engine.

The company currently offers faster settlement of cash-on-delivery payments, embedded insurance and financing through partner non-banking financial companies (NBFCs) to increase merchants’ access to working capital. “Our objective isn’t to monetise financial services directly. It’s to give merchants better access to capital so they can grow faster. As they grow, we process more transactions,” he said.

Looking beyond the IPO, Goel said investors should focus less on quarterly fluctuations and more on three operating metrics that have remained consistent throughout Shiprocket’s evolution: the number of merchants transacting on the platform, the number of transactions processed, and contribution and revenue generated per transaction. “These three metrics tell you exactly what’s happening in the business. Multiply them together and you understand both revenue and margins,” he said.