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Delhivery, a 3rd party Logistics Service Provider, wanting to become the Operating System for Commerce in India

Delhivery, a 3rd party Logistics Service Provider, wanting to become the Operating System for Commerce in India | Karo Startup
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Delhivery was commenced by a bunch of engineers – Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan and Kapil Bharati – in 2011. Delhivery is a third-party logistics service provider, operating in over 1,200 cities in India. Since its inception in 2011, Delhivery has served as India’s steering supply chain services company. Delhivery’s notion is to evolve as the operating system for commerce in India, through an assortment of world-class infrastructure, logistics operations of high quality and pioneering engineering and technology skills.

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Delhivery provides products and services to Build Trust and Improve the lives of consumers.

Gurugram based Delhivery offers last-mile delivery, third-party and transit warehousing, reverse logistics, payment collection, vendor-to-warehouse and vendor-to-customer shipping, and more. It was initially conceptualized as a hyperlocal express delivery service provider for offline stores, delivering flowers and food locally in Gurgaon for the first few months. The online wholesaling segment was at the time broadening rapidly in India, with global investors indicating significant interest. Between 2015 and 2018, Delhivery acknowledges having grown at an annual pace of nearly 65%. Almost a quarter of commodities ordered online in India pass through the company’s track currently.

MOhit Tandon Cofounder of Delhivery | Karo Startup

We saw a big challenge for eCommerce firms while delivering the shipment at consumers’ doorstep. Though the opportunity was huge, it requires significant investment. So initially we decided to serve NCR region only,” said Mohit Tandon. co-founder, Delhivery

Delivery Tracking India

Delhivery is disrupting India’s logistics industry through its proprietary network design, infrastructure, partnerships, and engineering and technology capabilities. It brings remarkable cost efficiency and pan-India stretch to the businesses of over 100,000 customers and over 15 million consumers every month.

The Gurugram-based company has 75 fulfilment centres, 24 automated sort centres, 70 hubs, 2,500+ delivery centres, 8,000+ partner centres, 14,000+ vehicles, and 40,000+ employees. At present, Delhivery can process more than 10 lakh+ (1 million+) parcels per day. In March 2019, Delhivery raised its biggest round of funding with a $413 million investment from Softbank.

Delhivery increased the level of its services such as B2B and B2C order fulfilments, multi-location management, and partnership with eCommerce businesses and transportation systems.

Delivery Tracking India | Karo Startup

How does it work?

The company has subsidised in a technology platform that has allowed differentiation even in its delivery business. It avenues packages faster via different flights throughout the day as well as using multiple modes of transport – whenever a box desires to be delivered, the backend system plans its fastest route automatically, including which flight it should take.

The company also does not use the conventional hub-and-spoke model for delivering parcels. In this model, products ordered within a city are always routed through the hub before it reaches the spoke, leading to delays. “We use a distributed model where every branch can function as the hub and is a processing centre by itself. They can route packages directly to the customer, avoiding parking it in the hub,” Barua says, explaining how Delhivery delivers faster than other logistics companies.

Funding and strengthening the delivery capacity

The logistics startup made headlines last year when it secured $413 million in a funding round led by SoftBank Vision Fund. Existing investors Carlyle Group and Fosun International also partook in that funding round, which catapulted Delhivery into the coveted unicorn club and pegged its valuation at $1.5 billion+.

Delhivery looking forward to strengthening its last-mile

Delivery capacity through its several partner programmes, on-boarding individual bikers, transporters, local kirana’s, and businesses. Delivery also strives to build over 15,000 seasonal openings across operations over the next few weeks in the run-up to the festive season. The company is also geared up to deal with 65-75 million packages in the upcoming festive season, which is almost a 100 percent growth over the last year.

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