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India’s e-commerce logistics space to exceed 10 bn parcels by FY28: Redseer

A report by Redseer Strategic Consultants forecasts that India’s ecommerce logistics industry will handle more than 10 billion parcels by FY28. The industry recorded over 4 billion parcels in FY23, with new categories, direct-to-consumer (D2C) brands, and continued growth in Tier II and beyond cities driving the growth.

The report also highlighted that even while the e-logistics market had greater competition and pressure on yields from ecommerce players, the industry’s long-term outlook remained positive. The D2C segment is emerging as a major growth area, and the overall ecommerce logistics opportunity is predicted to grow at a minimum compound annual growth rate (CAGR) of over 20%.

D2C brands, including online-first new-age brands from Indian players, are expected to grow overall GMV at 35% in the next few years. The report stated that by CY27, D2C brands are expected to generate a total of $33 billion in GMV across all channels, providing a market opportunity for logistics players with relevant and customized products for D2C brands.

According to the report, Delhivery is the leading player in the e-logistics industry. It provides a wide range of services for D2C brands and has a rapidly expanding non-ecommerce business, which makes it more resilient to recent macro trends in the ecommerce industry.

“Despite funding headwinds in ecommerce/internet sectors, there are multiple pockets of high-growth and high-yield opportunities available for e-logistics players, be in D2C or large goods or non-ecommerce segments like C2C, PTL/FTL, and wider SCM services,” said Mrigank Gutgutia, Partner, Redseer Strategy Consultants. 

“Players who build robust capabilities and offerings to serve this demand effectively will fundamentally be more resilient in these challenging times and will be better positioned for long-term market share and yield leadership,” he added.

Redseer Strategy Consultants is a tech- and data-driven consultancy firm that offers guidance to investors and new-age businesses. 1,000 consultants are working for the company, with offices in Southeast Asia, the Middle East, and India.

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