Lalithaa Jewellery Mart Ltd. IPO

Shiprocket

• Shiprocket is coming out with a 100% book building; initial public offering (IPO) of 17,35,03,227 shares of face value Rs 10 each in a price band Rs 92-97 per equity share. 
• Not more than 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 10% for the retail investors.
• The issue will open for subscription on August 12, 2026 and will close on August 14, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 10 and is priced 9.20 times of its face value on the lower side and 9.70 times on the higher side.
• Book running lead managers to the issue are Axis Capital, BofA Securities India, JM Financial and Kotak Mahindra Capital Company.
• Compliance officer for the issue is Nikhil Kumar. 

Profile of the company

Shiprocket is an end-to-end, new age, merchant-first, and API-led technology platform designed to enable e-commerce transactions for India’s MSMEs and Large Retailers. Its Shiprocket platform simplifies logistics, checkout, payments, fulfilment, and cross-border trade, enabling Merchants to sell online and offline efficiently and at scale. It is the largest new-age end-to-end horizontal e-commerce enablement platform. Its platform is purpose-built to simplify e-commerce for Merchants who sell directly to end consumers through their own websites, apps or social media channels (Direct Commerce).

Its business was founded on being a shipping enabler, with its Core Business now encompassing its Domestic Shipping platform, whereby it provides Merchants with access to logistics partners to deliver goods to end consumers within India, and its Shipping Apps, which are value added software utilities that enhance Merchants’ Domestic Shipping transactions by offering features like instant pickups, order tracking, secure shipments, weight discrepancy intelligence, and early COD remittance. Its business has evolved into a platform that offers a range of additional tools and platforms that Merchants can leverage independently of, or in addition to, its Core Business offerings, to enhance Merchant operations and the end consumer experience. Its business also has offerings that focus on new market creation and solving challenges in early stages of the order journey and underserved segments of e-commerce.

Proceed is being used for: 

• Investing in the growth of the its platforms by way of investment in marketing initiatives primarily for its emerging business and for its core business; and investment in technology infrastructure and capabilities primarily for its emerging business and for its core business
• Repayment / prepayment, in full or in part, of certain borrowings availed of by the company including payment of the interest accrued thereon
• Funding inorganic growth through unidentified acquisitions and general corporate purposes

Industry overview

The business-to-consumer market opportunity in India is evolving across both domestic retail and cross-border merchandise retail, driven by a mix of offline and online channels, presenting a large and growing opportunity for new age end-to-end horizontal e-commerce enablement platforms offering key services to Merchants. Online commerce, offline commerce and cross-border merchandise retail together represent a market opportunity of Rs 7.7-8.4 trillion ($92-101 billion) gross merchandise value for new age end-to-end horizontal e-commerce enablement platforms in CY 2024. Among them, Direct Commerce generated a gross merchandise value of Rs 581-747 ($7-9 billion) billion in CY 2024, is expected to grow at a CAGR of 20-25% until CY 2029, and accounts for 10-13% of online retail in CY 2024. As India’s Direct Commerce landscape matures, the need for scalable, flexible, and cost-effective commerce enablement solutions will continue to grow.

India's merchandise exports have been steadily expanding, reaching approximately Rs 43 trillion (approximately $497 billion) in CY 2025 and projected to grow at a CAGR of 12-15%, reaching Rs 76- Rs 87 trillion ($875-999 billion) by CY 2030. This incorporates a diverse range of products, including textiles, electronics, pharmaceuticals, and handicrafts, catering to key markets such as the Middle East, Europe, and the US. While there is substantial demand for Indian products in global markets, MSMEs face multiple constraints that limit their ability to scale internationally. Exporting involves regulatory complexities, cost inefficiencies, and infrastructure gaps that create barriers for small businesses looking to expand beyond domestic borders. Technology-driven platforms address structural inefficiencies and enabling MSMEs to participate in cross-border trade more effectively. By integrating logistics, compliance, and payments, these platforms are lowering the entry barriers and operational risks for smaller businesses.

Pros and strengths 

Profitable and scalable core business with operating leverage: Its core business has been profitable since Fiscal 2022, demonstrating the ability of its platform-based business model to drive growth while maintaining cost efficiency. By structuring its operations around a tech-enabled, asset-light platform, it has been able to scale efficiently while optimizing its fixed costs, comprising employee benefits expense and server and communication cost. This gives rise to operating leverage within its Core Business. From Fiscal 2024 to Fiscal 2026, Revenue from Operations - Core Business increased by a CAGR of 17.02%. As its revenue grew, it was able to serve more Merchants without a proportional increase in costs, as reflected in the improved Adjusted EBITDA of its Core Business.

Leveraging scale to optimize business performance: The company is the largest new-age end-to-end horizontal e-commerce enablement platform registered in India in Fiscal 2026. Further, it has the largest Merchant base amongst new-age end-to-end horizontal e-commerce enablement platforms registered in India having a revenue of more than Rs 1 billion in the twelve months period ended Fiscal 2026. It served 214,769 Active Merchants in Fiscal 2026. It enabled Merchants to serve more than 155 million end consumers across more than 19,000 pin codes from October 2016 to March 2026, with 29.38 million new end consumers added in Fiscal 2026. Its scale allows it to work with multiple logistics and fulfilment centre providers to develop solutions that meet the needs of Merchants across different business segments.

Self-serve platform offering enterprise-grade experience drawing organic traffic: Its self-serve platform is intuitive and offers an efficient user experience for Merchants. Smaller and individual retailers lacking the technical know-how to build a website, rely on direct communication to receive orders. Its platform is easy to use, with 96.73% of its Merchant onboarding was completed without any intervention from its support team for the Core Business in Fiscal 2026. This removes the need for extensive external support. Its platform is designed with an understanding of the unique challenges that Merchants face, including operational complexities associated with managing online commerce as a result of using multiple service providers.

Modular and open platform enabling rapid expansion: It has built a platform that enables the development, acquisition, and integration of new products and offerings, supporting the entire e-commerce transaction cycle. Unlike vertical enablement platforms, which focus on single-function solutions and require businesses to stitch together multiple services, horizontal end-to-end e-commerce enablement platforms offer a seamless, end-to-end commerce stack. Its platform is designed for open integrations, allowing third-party developers to build and customize solutions through APIs. Unlike closed ecosystems that limit external connectivity, its approach enables Merchants to extend platform functionality based on their specific business needs.

Risks and concerns

Dependence on Merchant sales and transaction volumes: The company enters into service agreements with its Merchants, which provide a legal framework for governing the relationship between it and its Merchants. As it primarily operates on a consumption-based model, fluctuations in its Merchants’ sales and transactions on its platform directly affect its revenue. Its Merchants’ sales may decline or fail to grow due to factors beyond their control, such as adverse macroeconomic conditions, unfavourable business environments affecting specific Merchants or industries, and shifts in consumer spending patterns. A decline in its Merchants’ sales for any reason typically results in fewer transactions, leading to lower transaction volumes and associated revenue for us. Weak economic conditions also could extend the length of its Merchants’ sales cycle and cause end consumers to delay or forgo purchases of their products and services. Furthermore, if the financial condition of a Merchant deteriorates significantly, they may cease their operations entirely and discontinue the use of its offerings. Any of the foregoing could materially and adversely affect its business, financial condition, cash flows, results of operations and prospects.

Risks associated with expansion of cross-border business: As part of its business strategy, it seeks to expand its higher-margin offerings through its cross-border platform. In line with this strategy, it introduced ShiprocketX in January 2022, which served cross-border shipping services to 169 countries with the support of its supply chain partners until March 31, 2026. Establishing operations in foreign markets where it has limited or no experience poses challenges, particularly when operating in unfamiliar environments with limited network partners. In addition, it faces additional competition from established local and international players. As such, it may incur significant investments in growing its Cross-border business and there is no assurance that it will be able to recoup its investments in a timely manner or at all. Cross-border transactions may also be subject to a complex array of rules and regulations, including transfer pricing, double tax avoidance agreements, and varying guidelines, all of which could increase its compliance and operational costs.

Heavily dependence on logistics partners: The company enters into contracts with its logistics partners (including couriers, suppliers and cargo partners) on an independent contractor basis, pursuant to which the logistics partners agree to provide specified services that are offered on its platform. For example, its logistic partners provide delivery services for orders that are transmitted to them through its Core Business and/or the Shiprocket Quick platform. These contracts are typically entered into on a long-term basis and remain into existence unless terminated by it or the logistics partner. Such agreements typically have a standard price for shipping depending upon the weight and area of delivery and often have insurance and indemnity provisions for covering losses resulting out of damage or loss of shipment. Its logistics partners do not have exclusive arrangements with the company and could use multiple third-party platforms concurrently as they attempt to maximize earnings. Its logistics partners may choose to prioritize the provision of services to its competitors, which could result in delays in delivery or reduced service quality. This could impact its ability to meet delivery timelines and maintain customer satisfaction, thereby adversely affecting its reputation and business.

Reliance on core business operations: It relies significantly on the performance of its Core Business. Revenue from operations - Core Business stood at 73.38%, 80.02%, and 82.42% of Revenue from Operations in Fiscal 2026, Fiscal 2025, and Fiscal 2024, respectively. Its Core Business segment comprises its Domestic Shipping business, which streamlines e-commerce shipping within India by connecting Merchants with a network of logistics providers to deliver their package to end consumers within India, and its Shipping Apps. Any disruption in its core business offerings could adversely affect its business, financial condition, cash flows and results of operations.

Outlook

Shiprocket is an e-commerce enablement platform powering direct commerce. it helps small businesses, retail brands, direct-to-consumer merchants, and social commerce retailers scale through its technology stack. The company is also engaged in the business of analytics, marketing automation and personalization services for ecommerce and retail companies. It runs analytics on behaviour and transactional data and utilise that data for providing marketing or analysis services to its merchants. It also acts as a services provider facilitating financing arrangements between Non-Banking Financial companies (NBFCs)/Lending Partners and the merchants to enable access to credit. On the concern side, it relies on various third-party vendors, including logistics and fulfilment centre providers, communication platforms, cloud infrastructure providers, shopping carts, social media platforms and marketplaces, payment gateways, ERPs, developers, credit providers and fulfilment service providers in the operation of its business, and its Cost of Merchant Solutions contributed to 69.39%, 69.34% and 58.94% of total expenses in Fiscals 2026, 2025 and 2024, respectively. Any deterioration in its relationships with, or disruption of the services provided by, such vendors could adversely affect its business, financial condition, cash flows and results of operations.

The issue has been offering 17,35,03,227 shares in a price band of Rs 92-97 per equity share. The aggregate size of the offer is around Rs 1,596.23 crore to Rs 1682.98 crore based on lower and upper price band respectively. Minimum application is to be made for 154 shares and in multiples thereon, thereafter. On performance front, its revenue from operations grew by 24.03%, reaching Rs 20,241.41 million in Fiscal 2026, up from Rs 16,320.12 million in Fiscal 2025. Its restated loss of Rs 792.45 million in Fiscal 2026, compared with loss of Rs 744.49 million in Fiscal 2025.

Meanwhile, it plans to grow its Domestic Shipping business and Shipping Apps (including RTO Score, Delivery Boost and Brand Boost), including providing more quick shipping modes, similar to same-day delivery and next-day delivery, to addressing end consumer demand for faster deliveries. It also plans to introduce new shipping categories like specialized logistics and return management. It plans to deepen its penetration within Tier 2 and Tier 3 cities and target semi-digital Merchants because it has the scale of transactions required to make these offerings viable for its vendors that are underserved by traditional e-commerce platforms. To deepen its penetration, it plans to open new regional offices in Western and Southern parts of India, adding to its eight regional offices in Gurugram, Surat, Jaipur, Bangalore, Mumbai and Delhi, to enable it to extend in-person, localized support to more Merchants and enable it to develop more on-the-ground insights on those regions.