India's E-Commerce Logistics Industry Set To Hit 10 Billion Shipments By 2028: What's Driving Growth

India’s e-commerce logistics industry saw total shipments reach 4 billion in FY23, riding on the rise of direct-to-consumer (D2C) brands and e-commerce penetration in Tier 2+ towns, according to a report by a leading strategy consulting firm.

What Happened? According to Redseer Strategy Consultants, the number of e-commerce parcels shipped is projected to surpass 10 billion within the next five years.

D2C brands across channels are expected to account for 35% of overall e-commerce gross merchandise volume (GMV) in the coming years, generating $33 billion of GMV by 2027, notes Redseer. This high-growth segment presents an opportunity for logistics players with relevant and customized offerings for D2C brands.

Currently, Delhivery is the largest e-commerce logistics player in India and more insulated from larger e-commerce pressures than its peers due to its substantial exposure to non-e-commerce clients.

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Mrigank Gutgutia, a partner at Redseer notes that e-logistics players can find opportunities with high growth and high yield in various segments, including D2C, large goods, non-e-commerce, and wider supply chain management services.

He added that companies that develop strong capabilities and offerings to cater to this demand will be more resilient in challenging times and will have a better chance of gaining long-term market share, despite the funding difficulties faced by the e-commerce industry.

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