Logistics-tech unicorn Shiprocket’s profitability improved sharply in the financial year ended March 2025, with the company posting positive adjusted Ebitda of Rs 7 crore, compared to a burn of Rs 128 crore in the preceding fiscal.
The company’s revenue increased 24% year-over-year to Rs 1,632 crore, driven by steady growth in its core shipping business and the rapid expansion of newer business lines. The company’s core business, which includes domestic shipping and value-added tech solutions for merchants, grew more than 20% to Rs 1,306 crore.
Emerging businesses, which include payments, marketing, post-purchase services, and cross-border shipping, surged 41% and now account for 20% of Shiprocket’s revenue.
Expenses remained largely flat throughout the year, even as topline grew, which helped double its cash profit from the core business to Rs 157 crore. Improved Ebitda profitability helped the company reduce its net loss to Rs 74 crore. In FY24, a one-time, non-cash restructuring and integration-related accounting expense of Rs 244 crore had pushed its net loss to Rs 595 crore.
“The core offering has always been profitable,” noted Tanmay Kumar, CFO, Shiprocket, in an interaction with FE. The business posted margins of 12% in FY25. He added that the company kept costs steady, allowing much of the revenue growth to translate into profitability.
Shiprocket’s improved profitability comes at a time when most e-commerce companies, such as Amazon, Flipkart, and Meesho, are expanding their in-house logistics capabilities — a trend that adds to volume and pricing pressures for third-party logistics (3PL) providers such as Shiprocket. This trend has already begun a phase of consolidation in the ecosystem, with 3PL player Delhivery acquiring smaller rival Ecom Express to strengthen its position in the market.
Kumar added that a significant portion of the profits from Shiprocket’s core business is being invested to grow its newer verticals. “The emerging businesses are fairly growth hungry. What is 20% of revenue today, used to be only 11% a couple of years ago,” he said.
Shiprocket has onboarded more than 400,000 merchants so far, with 180,000 being active at any time. Kumar sees a large opportunity from digital-first brands that are looking to offer quicker deliveries to their customers.
The company has used acquisitions several times to fuel inorganic growth in the past few years. In 2022, it picked up an 80% stake in rival Pickrr in a $200 million deal, and then subsequently acquired the remaining stake. It also bought Glaucus Supply Chain Solutions and Omuni, the omni-channel technology business of apparel retailer Arvind.