From last-mile delivery to now end-to-end logistics, Delhivery is forging ahead full steam

Over the past two years and so ecommerce has drawn attention of every quarter - consumers, entrepreneurs, venture capitalists and media. Subsequently, we have successful startups such as Flipkart, Snapdeal, ShopClues including others. However, when it comes to supporting services for ecommerce, such as logistics, we have only a few startups which have improved the situation for the sector. One such startup is Gurgaon-based Delhivery. Started as a last-mile logistics company in June 2011, Delhivery has now become an end-to-end logistics service provider.

Delhivery began as a last-mile logistics partner for Urbantouch and Healthkart in Gurgaon. Later on, the company expanded its footprints in the whole National Capital Region (NCR). “We saw a big challenge for ecommerce firms while delivering the shipment at consumers’ doorstep. Though the opportunity was real big, it requires significant investment. So initially we decided to serve NCR region only,” said Mohit Tandon. co-founder, Delhivery.

After completing two successful years, Delhivery currently offers end-to-end logistics service to more than 1500 pincodes, and delivers around 15,000 to 20,000 shipments everyday. “Currently we handle logistics for more than 100 clients including Snapdeal, Myntra and Indiatimes Shopping,” said Tandon.

Pricing

Delhivery charges Rs. 30 to 35 to pick and deliver a 500 gm. packet in NCR, Rs. 40-45 for transferring a packet (same weight) to metro cities and Rs 50 for tier-2 and tier-3 cities. For reverse logistics, it charges anywhere between 1.2X to 1.5X of forward logistics.

With over 20,000 sq ft warehousing space in Delhi and Bangalore, Delhivery also offers third-party warehousing and transit warehousing services to its partners, and coordinates across the supply chain ranging from inbound to inventory management to packaging, dispatch and fulfillment. “Around 70 to 80% of our warehousing space is being utilized by vendors supplying to ecommerce marketplaces. Besides these offerings we also handle drop shipping for more than 1,000 vendors across India’” added Tandon.

To give complete control to its clients, Delhivery has developed Transit Warehouse Management System (TWMS) and Transport Management System (TMS). These software enable ecommerce firms and vendors to integrate seamlessly with multi-tier processes, including procurement, warehouse and order management systems.

On acquisition of GharPay and raising fund

In June 2012, Indiatimes Shopping, an online retail arm of Times Internet Limited (TIL), bought minority stake in Delhivery after investing an undisclosed sum. Though Tandon didn’t disclose the amount raised by Delhivery, it is said to be in the range of $2-5 million.

Earlier this year, Delhivery acquired offline cash collection network of Gharpay for an undisclosed amount. On the acquisition, Tandon said, “Even before acquiring GharPay, we have been offering multiple payment options to our clients' customers through different mediums like cash, cheque or POS credit and debit card swipe. GharPay’s strong network and expertise will give us greater control on cash collection for our partners ”.