Ordering Food Or A New iPhone? How Logistics Startups In India Have Changed The Supply Chain Sector!

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Logistics Startups In India

Logistics startups in India have witnessed substantial growth in the last decade due to the huge growth in the e-commerce and supply chain sector.

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From Amazon to Flipkart, each organisation needs end-to-end servicing for their logistics needs. Local Indian logistic aggregators have the advantage of hyperlocal delivery setups which are hard to emulated by big players.

A. Role In The Indian Exports & E-commerce Sector!

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Indian logistics startups have exploded in such large number that they could themselves be classified as a category. Aggregators such as Rivigo, Black Buck, Ekart, Delhivery etc. operate on standalone and on-demand business. They have grown from the traditional way of operating logistics business.

With the Indian government’s push to infrastructure status to logistics which then subsequently brings it with the transport sector helps the sector tremendously.

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Also, the Make in India and Startup India initiated by the government of India play an important role in paving way for further investment into the hyperlocal logistics market in India.

B. Major Startups & Their Valuations!

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1. Rivigo: US$98,000,000

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Rivigo focuses on tech-enabled solutions for its logistics services. It uses a new model of delivery termed as ‘driver relay’. It works on delivery loads to pre-defined checkpoints. It was founded in 2014.

Founders: Deepak Garg, and Gazal Kalra 
Series D Funding – US$30,000,000

2. Delhivery: $85,000,000

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One of India’s biggest logistics service provider to the e-commerce sector. Headquartered in Gurgaon, Founded in 2011 and delivers to 1200 Indian cities.

Founders: Sahil Barua, Mohit Tandon, and Suraj Saharan
Series D Funding:
 $85,000,000

3. BlackBuck: US$30,000,000

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With operations starting just two years back, Blackbuck has dominated the intercity logistics market. It was started in 2015 & is headquartered in Bengaluru.

Founders: Rajesh Yabaji & Rama Subramaniam
Series D Funding:
 $30,000,000

4. RoadRunnr: US$21,000,000 [Now Runnr] 

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After being acquired by Zomato, Roadrunnr was merged with Tinyowl to operate as the logistics partner of Zomato food ordering business.

Founders: Mohit Kumar & Arpit Dave
Series D Funding: 
US$21,000,000

5. Gojavas: US$20,000,000

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Founded in 2013, Gojavas provides time-bound logistics and supply-chain solutions to its business partners.

Founders: Vijay Ghadge
Series D Funding: 
US$21,000,000

6. Ekart: US$30,000,000

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Once Flipkart’s in-house logistic partner and now major logistics startup in India! 

Founders: Flipkart Founders
Series D Funding: 
US$21,000,000

C. Challenges Faced By Logistics Startups!

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i) Infrastructural Issues

Logistics contributes almost 5% of the Indian GDP but still faces fragmented growth. This is largely attributed to the Indian infrastructure.

National highways remain clogged with traffic on important routes, add safety concerns on top of that!

Freight trains slow and inefficient with just an average speed of about 25km/hour which is even slower than inner-city traffic speeds.

Checkpoints at states borders take a lot of time and rampant corruption disrupts smooth and honest functioning. The government is trying to tackle such issue with GST but India still is far from a place of goodness!

ii) Drivers & Middlemen

English is a major bottleneck for most of the truck drivers, add poor education and lucrative offers by middlemen, a recipe for pure disaster. It is one of the main reason for the famous cases of bricks/soaps instead of iPhones which are usually altered by the drivers or delivery agents!

Runaway cases are also common in the transport sector.

It is also difficult to embed the trucks and drivers with technology which further makes it difficult to keep the drivers accountable and responsible.

D. Solution & Revenues Through Technology!

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Startups such as Delhivery now track shipments in real time. They are even equipped with more IoT technologies such as GPS and alerts when a particular fleet reaches the endpoint or the customer.

Further, breakdowns are now accounted for, which has solved a lot of hurdles for the logistics startups in India. These mobility solutions are breaking the old age traditions in the sector with the implementation of IoT & hardware solutions.

  • Hindi & Local Languages Incorporated In Apps!
  • GPS Enabled Tracking
  • Logging Softwares & Driver Management Systems
  • Real-Time Updates & Checkups

From mobile apps to driver management systems, each new introduction is making the logistics ride safer and more cost-efficient.

So, whenever you order a new smartphone, a new dress online or even food from your most beloved restaurant, remember there is a logistics company that is making that delivery possible! From on-demand delivery apps to 30-minute express delivery, the logistics startups in India has definitely risen to the challenge!

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