Zomato-backed Shiprocket raises $11Mn 🚢

Hey there,

Zomato-backed Shiprocket just secured $11Mn from... McKinsey! 🤯 

Yes, you read that right. Not from a typical VC, but from a global consulting firm. And here's the twist: at the SAME valuation as before 😕 

Quick Context: Shiprocket has been the go-to name for many e-commerce platforms, offering a tech stack that integrates seamlessly with platforms like Shopify and Magento.

From acquiring companies to achieving unicorn status in 2022, their journey has been nothing short of a roller-coaster ride.

Now, they've taken an unconventional route by raising funds from McKinsey.

But why? 👇

1. More Than Just Money:

McKinsey, via its investment arm AFOS LLC, isn't just putting money into Shiprocket. This is about strategic partnership. Imagine the vast business strategy expertise of McKinsey now being a phone call away for Shiprocket.

Global expansion? Operational excellence? It's all on the table.

2. The Valuation Conundrum:

The funding comes at a flat valuation of $1.2 billion, identical to their last round. With reported losses in FY22 contrasting their profits in FY21, this move might be a strategic play rather than a valuation game.

3. A New Era for Consulting Firms?

This step might show a new path for management consulting companies. They might start diversifying their portfolios and step into the startup funding world more. This funding for Shiprocket could be just the start

4. Strengthening Ties for Growth:

Shiprocket's recent partnerships, like with India Post, show their ambition. Their collaboration with Klub also hints at their commitment to helping merchants at every growth stage.

With consulting firms having ties with giants like HUL, government departments, and even startups, Shiprocket might just have unlocked a huge network of B2B opportunities.

Shiprocket's decision to onboard McKinsey as an investor shows its forward-thinking approach. It's not just about capital; it's about building relationships that catalyze growth and innovation.

This leaves us pondering: Are we witnessing the dawn of consulting firms becoming pivotal players in the startup ecosystem?

Jargon of the day ✏️

Flat Valuation - When a company raises money at the same valuation as its previous funding round.

This means the company's estimated worth hasn't increased since the last time it secured investment. In Shiprocket's case, they raised funds at a flat valuation of $1.2 billion, identical to their last round.

Hope you enjoyed today's edition. Don't hesitate to share your thoughts with us.

Cheers,
Karthik