TLDR:
Key Points:
- Tribe Capital, a Silicon Valley-based fund, is doubling down on ecommerce logistics startup Shiprocket.
- The new special purpose vehicle (SPV) set up by Tribe Capital will invest $75 million in Shiprocket.
In a recent interaction with ET, Tribe Capital’s cofounder, Arjun Sethi, revealed that the SPV will not only invest in Shiprocket but also build and buy out companies in India, a departure from typical venture capital frameworks. The SPV will pump in a majority of the cash in Shiprocket’s ongoing funding round, valuing the startup at $1.2 billion. Additionally, Tribe Capital is setting up an alternate investment fund (AIF) in India, awaiting approval from SEBI, to make investments across financial services, commerce, and logistics sectors over the next five years.
Tribe Capital, through its global funds, already owns an 18% stake in Shiprocket and has backed startups like Khatabook and Blackbuck in India. Shiprocket is aiming for an IPO and plans to reach $1 billion in revenue over the next four to five years. The startup has been expanding its offerings through acquisitions of various companies in the retail and ecommerce space.
Overall, the move by Tribe Capital to invest further in Shiprocket and set up an SPV and AIF in India represents a strategic shift towards owning and building companies in the country, showcasing confidence in the potential of Indian startups.
