Shipwaves Online
- Shipwaves Online is coming out with an initial public offering (IPO) of 4,69,60,000 equity shares of face value of Rs 1 each for cash at a fixed price of Rs 12 per equity share.
- The issue will open on September 30, 2025 and will close on October 6, 2025.
- The shares will be listed on SME Platform of BSE.
- The share is priced at 12.00 times higher to its face value of Rs 1.
- Book running lead manager to the issue is Finshore Management Services.
- Compliance Officer for the issue is Jessica Juliana Mendonca.
Profile of the company
Shipwaves Online presents itself as a comprehensive, single unified platform designed to meet its client’s shipping and logistical needs. Its expertise spans across multimodal transportation solutions, offering seamless end-to-end support for shipments across Ocean, Land, and Air. With a focus on providing efficient, cost-effective, and reliable services, it enables businesses to manage and move shipments globally with ease. Its platform is built to offer real-time visibility, ensuring that clients have full transparency and control over their logistics operations from the point of origin to the final destination. By integrating the capabilities of multimodal transport, it provides businesses with the flexibility to choose the best routes and modes of transportation based on their specific requirements - be it speed, cost, or efficiency. The company offers two primary service categories -- Digital Freight Forwarding and Enterprise SaaS Solutions -- each designed to meet the evolving needs of businesses in the global logistics and supply chain industry.
As a digital freight forwarder, it provides end-to-end logistics services by leveraging advanced technology to streamline the transportation process across multiple modes -- ocean, land, and air. Its platform facilitates hassle-free bookings, real-time shipment tracking, automated documentation, and efficient customs clearance. Through a digital-first approach, it helps businesses optimize freight movement, reduce manual intervention, and achieve cost and time savings. Its expertise covers everything from booking and managing cargo space to ensuring on-time deliveries, all while offering full visibility and transparency throughout the shipment lifecycle.
In addition to its freight forwarding capabilities, the company delivers robust Enterprise SaaS Solutions tailored to meet the complex demands of supply chain management. Its SaaS platform offers an integrated suite of tools designed to streamline logistics operations, providing businesses with complete visibility and control over their supply chain. These solutions include real-time data analytics, predictive insights for demand forecasting, supply chain optimization, inventory management, and comprehensive shipment planning tools. Its software platform helps enterprises of all sizes to digitalize and automate their logistics processes, improving overall efficiency, minimizing risks, and driving performance. Together, its Digital Freight Forwarding services and Enterprise SaaS Solutions form a cohesive and innovative approach to managing modern logistics challenges with precision and scalability.
Proceed is being used for:
- Meeting working capital requirements of issuer company
- Investment in Subsidiary for funding its working capital requirements
- Repayment and/or pre-payment, in full or part, of certain borrowings availed by the issuer company
- Meeting the issue expenses
- General corporate purposes
Industry Overview
The Indian logistics sector is one of the largest in the world and presents a huge addressable opportunity. The sector is critical for the country's economic growth as it connects various elements of the economy and consists of transportation, warehousing and other supply chain solutions ranging from suppliers to end customers. The Department of Commerce set up a logistics division in July 2017 to oversee the integrated development of the sector. Led by the Special Secretary to the Government of India, the division aims to enhance the sector by devising action plans for policy reforms and process enhancements, addressing challenges, and embracing technology. India's logistics and supply chain industry is experiencing a major transformation, led by several government initiatives aimed at boosting the sector. Notably, implementing GST and recognising logistics as infrastructure status are two critical moves that have been instrumental in driving this change.
The Indian logistics sector stands as one of the world's largest and plays a crucial role in driving economic growth. Following a 2% contraction in FY21, the market experienced a robust post-COVID recovery in FY22, witnessing a remarkable 14% growth and reaching a value of $435 billion. As per the projections from EY, a leading global consulting firm, the logistics market in India is poised to expand further, reaching $591 billion by FY27. The report further states that in FY22, organised players represented only 5.5-6% of the logistics market segments, encompassing road transportation, warehousing, and supply chain services. However, organised players are anticipated to exhibit a notable CAGR of approximately 32% between 2022 and 2027. Consequently, their market share is expected to reach 12-15% by FY27. This transformation is expected to be led by organised players’ capacity to provide integrated services, leverage network- and scale-driven efficiencies, and make substantial investments in technology and engineering. These efforts are projected to promote their market competitiveness and capture a larger share of customer business.
Meanwhile, the Indian Software-as-a-Service (SaaS) sector is projected to reach $50 billion by 2030, with the potential for further growth due to rapid advancements in artificial intelligence (AI) and its integration into SaaS solutions. The Indian startup ecosystem is expected to attract $1 billion in new venture funding in 2024, a 25% increase from the previous year, with a significant portion aimed at AI-focused companies. Notably, around 60% of previously pure SaaS startups are evolving into AI-enabled providers, marking a significant shift in the industry landscape. Further, the global software as a service market is estimated to reach a valuation of $1267.5 billion by the year 2032, at a CAGR of 18.3% during the forecast period from 2024 to 2032. SaaS, or Software as a Service, is a cloud-based service that delivers software applications over the Internet. The SaaS market's growth is primarily driven by the increasing adoption of public cloud services in large and small-scale companies. The increasing adoption of SaaS by businesses, as a result of the expensive nature of on-premises software deployment, is expected to drive the growth of the market.
Pros and strengths
Innovative software: The company has developed a cutting-edge software platform designed to serve as a single, unified solution for all shipping needs. This innovative platform represents a significant strength for its organization, as it is distinct and unparalleled within the logistics industry. While the software is currently in the advanced stages of development and not yet fully operational, it holds immense potential to transform logistics operations and streamline processes across the sector. This platform will not only enhance efficiency and client satisfaction but also serve as a key revenue driver for the company in the near future, solidifying its position as a leader in logistics innovation.
Diverse customer base across many sectors: The company’s diversified customer base spans multiple sectors, reflecting its versatility and strong presence in the logistics industry. It caters to a wide range of industries and its clientele comprises both Indian corporate groups and multinational corporations, underscoring its ability to meet the needs of a varied and demanding market. With a comprehensive portfolio of logistics services tailored to the unique requirements of each sector, it is well-positioned to support a broad spectrum of industries. Over the years, it has cultivated enduring customer relationships by consistently delivering value-driven solutions and demonstrating its commitment to operational excellence. This strong foundation not only solidifies its reputation but also positions it for sustained growth in the dynamic logistics landscape.
Comprehensive and customized third-party logistics solutions: The company specializes in providing comprehensive third-party logistics (3PL) services, encompassing transportation, warehousing, and a range of value-added solutions -- all at highly competitive rates. Its end-to-end, tailor-made logistics solutions are designed to address the unique requirements of its customers, ensuring seamless and efficient supply chain operations. Its logistics offerings include cross-border freight transportation, which facilitates international trade for its clients, as well as other strategic services that enhance their operational efficiency. These solutions not only enable its customers to optimize their logistics but also open opportunities for cross-selling and expanding their market reach. By delivering reliable, customized, and value-driven services, it positions itself as a trusted partner in advancing its clients’ business objectives.
Risks and concerns
Maximum revenue comes from limited customers: The company has derived most of its revenues from the orders received from the limited or prime customers. The company has garnered 71.94%, 64.36% and 83.01% of its total revenue from top 5 customers in FY25, FY24 and FY23 respectively. Cancellation or orders by customers or delay or reduction in their orders could have a material adverse effect on its business, results of operations and financial condition.
Dependent on a few suppliers for purchases of product/service: The company is dependent on a few suppliers for purchases of product/service. The company has bought 61.96%, 56.70% and 70.27% of its product/service from top 10 suppliers in FY25, FY24 and FY23 respectively. The company cannot assure that it will be able to get the same quantum and quality of supplies, or any supplies at all, and the loss of supplies from one or more of them may adversely affect its purchases of stock and ultimately its revenue and results of operations.
Red Sea crisis may have a sustained impact on company’s operational performance: The ongoing Red Sea crisis has caused significant disruptions in global shipping routes. Shipping lines have been forced to reroute vessels around the Cape of Good Hope to avoid the Suez Canal and the Red Sea, leading to longer transit times, delayed deliveries, and increased fuel costs. These disruptions have also led to an increase in freight rates, particularly on high-demand trade lanes such as Asia to Europe, making shipping more expensive and unpredictable. As a result, the company faces the risk of higher operational costs, which could pressure profit margins.
Outlook
Shipwaves Online is engaged in the business of digital freight forwarding and enterprise SaaS solutions. The company offers a unified platform for shipping and logistics, providing multimodal transportation solutions ocean, land, and air ensuring efficient, cost-effective, and reliable global shipment management. The company has comprehensive and customized third-party logistics solutions. On the concern side, the company is dependent on and derive a substantial portion of its revenue from a limited number of customers. Cancellation or orders by customers or delay or reduction in their orders could have a material adverse effect on its business, results of operations and financial condition. Also, the company is dependent on a few suppliers for purchases of product/service. The loss of any of these large suppliers may affect its business operations.
The company is coming out with an IPO of 4,69,60,000 equity shares of face value of Rs 1 each for cash at a fixed price of Rs 12 per equity share to mobilize Rs 56.35 crore. On performance front, the company has reported 11.97% rise in revenue from operations to Rs 10,828.41 lakh in FY25 as compared to Rs 9,671.02 lakh in FY24. The company’s net profit surged 85.68% to Rs 1,083.77 lakh in FY25 from Rs 583.68 lakh in FY24.
The company is committed to develop smart logistics solutions powered by cutting-edge technologies such as Artificial Intelligence (AI) and Machine Learning (ML). By harnessing these advanced tools, it aims to optimize supply chain processes, enhance predictive analytics, and enable real-time decision-making for greater efficiency and accuracy. Its vision is to create intelligent systems that automate routine tasks, reduce operational costs, and improve service quality, thereby delivering superior value to its customers. These innovations will not only streamline logistics operations but also provide actionable insights that drive strategic decision-making. As it continues to invest in technology, it is focused on staying ahead of industry trends and setting new benchmarks for excellence in the logistics sector, ensuring long-term growth and competitive advantage.
