Business Overview

Shiprocket is an e-commerce enablement platform serving small businesses, independent retailers, and SMEs selling directly to consumers outside marketplaces. The platform provides digital infrastructure for shipping, payments, and marketing through an asset-light model integrating with over 250 partners including 42 courier companies. The company served over 15 crore consumers and processed over 20 crore transactions worth ₹32,000 crore GMV in FY26.

Financial Performance - Q1 FY27

Platform Metrics:

  • Transactions grew 36% year-over-year
  • GMV grew 31% year-over-year
  • Revenue from operations: ₹592 crore, up 34% YoY
  • Merchant count: 224,000+ (TTM basis), up 14% YoY
  • ARPU: up 18% YoY
  • Adjusted EBITDA: ₹8.9 crore, improved 9x YoY
  • Adjusted EBITDA per transaction: ₹1.45 (vs ₹0.22 last year)
  • Trailing 12-month metrics: 216 million transactions processed, ₹34,600 crore GMV

Segment Performance:

Core Shipping Business:

  • Revenue: ₹412 crore, up 22% YoY
  • Adjusted EBITDA: ₹52.7 crore
  • EBITDA margin: 12.8% (50 bps improvement YoY)
  • Transactions grew 31% YoY

Emerging Business:

  • Revenue: ₹180 crore, up 70% YoY and 14% sequentially
  • Share of total business: 30% (vs 24% last year)
  • Adjusted EBITDA margin: improved from -38% to -24% (1,380 bps improvement)
  • Contribution margin: 15.3% (600 bps improvement YoY)

Emerging Business Sub-segments:

1. Omnichannel (quick commerce, cargo, fulfillment): up 92% YoY

2. Cross-border: marginally down due to global volatility

3. Martech (checkout and marketing): small base but growing rapidly with better margins

Cross-sell Performance:

  • Percentage of core merchants buying emerging products: 8.8% (vs 7.3% last year)
  • Merchants served via emerging business: 48,000 (vs 30,000 last year)

Product Innovations Launched in Q1

1. Quikpay: Checkout solution that remembers shopper's preferred UPI app and surfaces discounts upfront to improve conversion rates and prepaid share

2. Steal Deal: Cart-based tool that recommends complementary products, creates urgency with limited-time offers, and gamifies basket to reduce abandonment and increase average order value

3. AI Assist: AI-powered chatbot that answers shopper questions pre-order and handles post-order queries like order tracking, returns, and cancellations without manual configuration

4. AI Ads: Creative platform that generates ad creatives in minutes across multiple formats (static banners, Shorts, 360 spin views) using brand performance data and category context

Operational Highlights

  • Omnichannel Integration: System integrated with quick commerce platforms to automate purchase orders, truck assignment, and delivery slot booking for D2C brands
  • Market Position: India's largest e-commerce enabler by revenue with majority GMV coming from Tier 2 and 3 cities
  • Acquisition Integration: Successful integration of Pickrr (2023 merger) and other acquisitions contributing to core and emerging businesses
  • Customer Acquisition: CAC fluctuated to approximately ₹3,600 (vs ₹3,100 last year and ₹2,800 last quarter) but maintains quick breakeven

Management Commentary

Growth Strategy: Focus on adding, retaining, and growing merchants through digital marketing, organic content, events, and inside sales support. The platform is designed to enable merchant orders and monetize across multiple margin pools.

Competitive Position: The data scale advantage with over 700 million transactions processed allows better routing, fraud scoring, and consumer behavior insights that drive merchant outcomes.

Seasonality: Q3 typically experiences softer performance as merchants redirect inventory and marketing to marketplaces during peak e-commerce seasons.

Margin Outlook: Core business shows operating leverage with EBITDA margin expanding from 6% three years ago to 12.8% currently. Emerging business margin improvement driven by growth leverage and mix shift toward higher-margin Martech offerings.