In 2019, over 14.5 billion dollars was raised for a variety of start-ups across India, including the logistics industry. Logistics software company CartonCloud believes there is huge potential for opportunity and success in logistics across India.
Due to the increase of infrastructure projects across India over the past decade, a desperate need for trusted logistics operators became apparent, drastically revolutionizing logistics operations and transport management systems across the country. The latest burst of development and the impact made by e-commerce has meant a number of logistics start-ups have started to flourish. Reviews XP states, “Even on intercity and intracity level, the logistics space has seen a major boom.
The monopoly that was earlier occupied by India Post has reduced due to the emergence of several private players. The rise of the delivery industry and e-shopping websites has further fuelled this growth.” In this article, we will explore the top five Indian logistics start-ups set to make a significant impact in 2024.
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1. Ecom Express
source: logupdateafrica.com
With partners ranging from Indian Police Departments to Amazon, Ecom Express is an Indian logistics start-up moving into major growth mode. In the past few years, Ecom has raised a considerable amount of money, including from New-York based firm Warburg Pincus, who has invested well over $75million.
According to Ecom Express, “We are a leading end-to-end logistics solutions provider with a focus on speed, safe and reliable nation-wide express delivery services to the e-commerce industry.” From warehousing order management services to biometric verification capabilities, Ecom Express is positioned as a reliable, Indian logistics company, set to flourish further in 2024. Warburg Pincus states, “Founded in 2012, Ecom Express is one of the leading logistics solutions providers to the Indian e-commerce industry.
Ecom Express has established its presence in the industry due to a differentiated business model that is built on delivery service capability, scalability, customization, and sustainability. Warburg Pincus invested in the company in 2015 to support its continued growth primarily by expanding its delivery footprint.”
2. Delhivery
source: nextunicorn.ventures
Delhivery is one of India’s largest parcel delivery operations, sufficiently supporting its clients with easy-to-use, real-time tracking software, schedules, and goods replacement options if customers aren’t satisfied. As of 2019, Delhivery reached approximately 600 million delivered shipments around India. With funding exceeding $350 million from global investment company SoftBank, Delhivery will continue to go from strength to strength this coming year.
Delhivery states, “Since its inception in 2011, Delhivery has become India’s leading supply chain services company. Our vision is to become the operating system for commerce in India, through a combination of world-class infrastructure, logistics operations of the highest quality and cutting-edge engineering and technology capabilities.”
3. Roambee
source: partners.sigfox.com
Founded in 2013, Roambee is an on-demand good and asset, monitoring company, supporting customers with key data, alerts, tracking services, and analytics. In recent years Roambee has been focused on developing it’s AI and robotic capabilities, integrating these functions to streamline its operations.
Unlike its competitors, Roambee has a branch in India, with its headquarters in Silicon Valley. Roambee states, “Roambee puts you in control of goods and assets with purposefully built sensor hardware, cloud data analytics, and automation – for reliable monitoring and response – indoors, outdoors, and in-transit. There are no sensors to purchase or manage; you only pay for what you monitor.”
4. BlackBuck
source: venturedreams.in
BlackBuck is a logistics company that provides trucks to large businesses (B2B) and supports all of its specific transport needs across India. With clients ranging from Coca-cola to Tata steel, BlackBuck is now one of India’s leading transport companies.
Only founded in 2015, within four years, BlackBuck has secured solid investment from the likes of Sands Capital Investment to Sequoia. BlackBuck’s business has become so successful that even Havard used it as a case study for students to better understand the start-up space in India. BlackBuck will continue to expand into 2024 and beyond, with a number of investors lining up to get a chunk of the profitable trucking business.
Techcrunch states, “India’s trucking system has a big inefficiency problem that continues to drag the economy. BlackBuck, one of the handfuls of logistics startups that are trying to overhaul this system, just raised $150 million in a Series D round to further pursue its mission. The new round was led by Goldman Sachs Investment Partners and Accel at a valuation just shy of $1 billion, according to a person familiar with the matter.” On top of their trucking services, Blackbuck has also integrated key technology to support its staff, drivers, and customers, so that goods can be clearly traced, and drivers have access to mapping systems that assist them with finding locations without hassle.
5. Blowhorn
source: medium.com
Blowhorn is focused solely on intra-city supply chain technology and is operating in a number of cities around India. A huge challenge facing logistics companies in Indian systems is terrible congestion, traffic conditions, making it more challenging for successful, on-time deliveries to take place. Blowhorn, however, is determined to find a solution to the problem and is dedicated to designing supportive technology to ensure these issues are adequately addressed.
“While most logistics startups have been focussed on shaping intercity logistics, around 40% of the total supply chain cost is intracity. Also, we are seeing a clear industry-agnostic trend towards higher fulfillment rates at faster delivery times within cities. Customers are no longer willing to wait for the goods they have ordered. This represents a huge challenge for intra-city supply chains, and a huge growth opportunity for nimble logistics start-ups optimized for speed such as Blowhorn,” states, Inc42.
Make In India states, “The Indian logistics sector is currently valued at $160 Bn, the sector is expected to become worth $215 Bn in the next two years.” With a huge opportunity continuing to intrigue investors around the globe, the Indian logistics space is thriving now more than ever. Although competition is steep, the market is still ripe for entry and welcomes further innovation and technological advancement, as illustrated by companies such as Blowhorn, BlackBuck, Delhivery, Ecom Express, and Roambee.