Page 40 - 20 Booming Logistics Companies in India 2021

FORECASTS FAVORING THE GROWTH OF 1. Dunzo
HYPER-LOCAL DELIVERY MARKET IN INDIA 2. Swiggy (Swiggy Go)
Technology enabled innovations like digital payments, 3. Housejoy
hyper-local logistics, analytics driven customer 4. UrbanClap
engagement and digital advertisements will likely 5. Zomato
support the growth in the sector. The growth in 6. BigBasket
E-commerce sector will also boost employment, 7. Grofers
increase revenues from export, increase tax collec- 8. Paytm Mall
tion by ex-chequers, and provide better products 9. Milkbasket
and services to customers in the long-term. Rise in 10. 1mg
smartphone usage is expected to rise 84% to reach 11. Medlife
859 million by 2022.
E-retail market is expected to continue its And many more.
strong growth - it registered a CAGR of over 35%
to reach Rs. 1.8 trillion (US$ 25.75 billion) in FY20. MAJOR INVESTMENTS DONE:
Over the next five years, the Indian e-retail industry LoadShare
is projected to exceed ~300-350 million shoppers,
propelling the online Gross Merchandise Value (GMV) LoadShare Networks, a logistics startup, has raised
to US$ 100-120 billion by 2025. a Series B funding round of Rs 100 crore (US$ 14.19
According to Bain & Company report, India’s million) led by BEENEXT along with participation from
social commerce gross merchandise value (GMV) CDC Group. Founded in 2017, LoadShare provides a
stood at ~US$ 2 billion in 2020. By 2025, it is range of solutions including hyperlocal, intracity B2C
expected to reach US$ 20 billion, with a potentially deliveries, as well as regional intercity solutions to
monumental jump to US$ 70 billion by 2030, owing to the B2B distribution logistics ecosystem.
high mobile usage. (Source: Ibef) “This investment is timely as it helps us deepen
our engagement with clients and continue building
capabilities through investments in technology,
WHAT IS HYPER-LOCAL/HYPER-LOCAL attracting the best talent, geographic expansion and
DELIVERY MODEL? undertaking new initiatives (especially, hyperlocal
Hyperlocal refers to any localized area such as a
neighbourhood, a city block, or even the whole city. delivery and movement of essentials),” said Mr Raghu
Talluri, chief executive, LoadShare.
And a hyperlocal delivery model is an online business He added that in the past 12 months, the startup
model in which the on-demand needs of customers has created over 3,000 new jobs across its partner
like grocery, medicine, laundry service etc. are met ecosystem and will continue focusing on this.
via local nearby shops/offline shops through an online The company also provide help to small and medium
model. Startups that work on the mode of supporting enterprises (SME) in logistics with technology, oper-
other businesses in last-mile delivery also comes ations know-how enabling them with a pan-India
under the umbrella of hyperlocal startups. network.
“LoadShare is operating in a deep US$ 20
THE RISE OF HYPERLOCAL DELIVERY billion addressable market, which is undergoing a
STARTUPS IN INDIA fundamental change. LoadShare’s execution across
A report of Datalabs by Inc42 states that the late- different logistics segments, enabled by their tech
stage investments into hyperlocal startups emerged enabled marketplace model working with SMEs
as the driving force for the rise in late-stage funding makes it exciting for us to partner with them,” said
(79.59% of the total funding) in the consumer services Mr Teruhide Sato, founder and managing partner,
segment. BEENEXT.
The instant delivery model for on-demand
product and services has been the growth catalyst Swiggy
for the success of hyperlocal delivery startups in Valued at $3.3 billion, the Bengaluru-based firm
India. The growth also shows positivity in the devel- has forayed into hyperlocal deliveries too through
opment of the Indian logistics infrastructure. ‘Swiggy Stores’. This has placed it in competition with
Amazon and Flipkart as well as online grocers such
In such a highly competitive market, hyperlocal as BigBasket, Grofers, and Google-backed Dunzo.
delivery startups needs to customized themselves The pilot for hyperlocal delivery, which is underway
with every changing tide to keep users coming back. at Gurugram, is expected to be scaled up to every
And thus, heavy investments are being in demand city where it has its presence.
to address the burgeoning user base. Currently,
the Indian hyperlocal delivery and services startups Grab
include: Mumbai-based Grab a Grub Services Pvt. Ltd that
runs hyperlocal logistics service Grab has raised
debt from United Arab Emirates-based logistics firm
Aramex Ventures Llc.

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