Shiprocket, the Delhi-based logistics and supply chain unicorn, is boosting its employee stock option plan (ESOP) with a $19 million expansion. This marks the first increase in the ESOP pool for the company this year.
The company’s board has approved the addition of 31,011 new ESOPs, bringing the total number of stock options to 1,74,440. According to Shiprocket’s regulatory filing, this move is expected to increase the total value of its ESOP pool to approximately $90 million (Rs 757 crore).
New ESOPs Reflect Confidence in Growth and IPO
For Shiprocket, this expansion is more than just a way to reward employees—it’s also a signal of the company’s confidence in its ongoing growth trajectory. The $16 million worth of new options will serve as an attractive incentive to retain talent, especially as the company looks towards its public listing in 2025.
The latest decision also includes a shift in the trust’s name. The ESOP trust, previously called the “Bigfoot Employee ESOP Trust,” will now be known as the “Shiprocket Employee ESOP Trust.” This change aligns with the company’s branding and emphasizes its readiness for the next phase.
It’s clear that Shiprocket is gearing up for a significant chapter in its development. After raising over $300 million in funding, the company’s valuation reached $1.23 billion during its last funding round. Notable investors like Zomato, Temasek, and Paypal have already helped the company secure a strong foothold in the competitive logistics sector.
Solid Revenue Growth, But Losses Continue
Shiprocket’s financial performance reflects a mixed but optimistic outlook. During the fiscal year ending in March 2024, the company posted a 21% year-on-year revenue growth, amounting to Rs 1,316 crore. However, the company’s losses stood at Rs 595 crore during the same period. Despite the negative profit margin, these figures indicate that the company is scaling up, and the losses may be part of its investment into expansion and technology.
In the logistics sector, Shiprocket competes with other players like Unicommerce, which recently acquired Shipway, and newer companies such as Shipyari. This rivalry highlights the challenges Shiprocket faces as it works to solidify its position as a leading enabler in India’s e-commerce logistics space.
IPO Plans on the Horizon
Looking ahead, Shiprocket is preparing for a potential initial public offering (IPO) in 2025. The company plans to raise between Rs 2,000–Rs 2,500 crore in its offering. As the IPO looms, the company’s recent focus on expanding its ESOP pool is indicative of its strategy to align employee incentives with its long-term goals, making sure that its workforce remains motivated during a period of rapid growth and public market entry.
The addition of these new ESOPs is likely to have a dual effect: encouraging existing employees to stay engaged while also making the company more attractive to new talent. With its upcoming IPO and strong investor backing, Shiprocket is setting itself up for what could be a very successful transition to the public market.
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