OUR BUSINESS
We are India’s only pure-play B2C e-commerce logistics solutions We operate a pan-India express logistics network covering first-mile pick-up, mid-mile transportation and last-mile delivery as well as reverse logistics (i.e., returns) and fulfilment services (i.e., warehousing). By providing essential logistics infrastructure and leveraging technology capabilities.
we connect digital retailers and e-commerce platforms to their end consumers across the country. As of March 31, 2024, we had the widest coverage pan-India and in Tier 2+ regions compared to our peers and cover over 27,000 PIN codes.
The B2C e-commerce market in India has strong long term growth prospects and is expected to grow at a CAGR of 21% over the next five years from ₹5,100 billion in gross merchandise value (“GMV”) for the Financial Year 2024 to ₹12,500 – ₹13,500 billion by the Financial Year 2029.
We have benefitted from, and are well positioned to further capitalize on, the growth of the Indian e-commerce industry. Further, growth in B2C e-commerce shipments is increasingly coming from Tier 2+ regions whose contribution to B2C e-commerce shipments grew to 62% in the Financial Year 2024 and is further expected to grow at a CAGR of 35% until the Financial Year 2029 and contribute to 70-80% of B2C e-commerce shipments .
We had the second-largest market share among our peers in terms of B2C e-commerce shipments and handled over 27% of all B2C e-commerce shipments through third-party logistics providers (“3PLs”) in India in the Financial Year 2024 .
Over the last decade, India’s e-commerce platforms have adapted and evolved into multiple business models (Source: RedSeer
Report). Horizontal e-commerce platforms offering multiple product categories on their platforms were supplemented by the
emergence of direct-to-consumer (D2C) brands, social commerce platforms and quick commerce models.
We have evolved our business and operations over time, taking into account changes in the e-commerce market by developing logistics solutions for each of these e-commerce categories. This has enabled us to handle over 2 billion shipments since our incorporation in 2013 and further, our annual shipments handled have grown at a CAGR of 33.46% between the
Financial Year 2020 and the Financial Year 2024.
We have actively focused on building capabilities to service different needs that our customers have felt in their growth journeys. For example, a significant number of our customers require their logistics providers to handle cash on delivery (“COD”) transactions with their consumers. We have been able to address this requirement, and 78.96%, 80.50% and 79.53% of our shipments for the Financial Year 2024, 2023, and 2022, respectively, were on a COD basis.
Our end-to-end offerings, differentiated network reach, technology driven capabilities and focus on service quality has enabled
us to build long-standing relationships with our customers across different e-commerce categories. Our customers include Meesho, Amazon, Nykaa, Puma, Purplle, E-Kart and V Mart among others. As of March 31, 2024, we had 6,384 active customers who have conducted a transaction .
The services we offer to our customers cover the following : –
- B2C Express Logistics. We provide comprehensive B2C express logistics solutions tailored to meet the needs of both fast-growing and established e-commerce companies.
- Time-Definite Deliveries (i.e., Same-Day Deliveries). We commenced same-day deliveries in order to meet the increasing demand for rapid order fulfilment in the e-commerce sector, ensuring swift and fast delivery of time-critical items.
- Reverse Logistics. We provide reverse logistics solutions, facilitating the efficient management of product returns from customers to origin points.
- Heavy B2C Express Shipments. We handle and transport heavy and bulky B2C e-commerce shipments, catering to customers and businesses requiring shipment of large or heavy items.
- Fulfilment Solutions (Warehousing). We provide comprehensive fulfilment services and assist with storing, managing, and distributing inventory for e-commerce companies.
- Quick Commerce. We provide warehousing solutions and dark store offerings tailored for quick commerce customers.
- Modular Solutions. In addition to the above, we also cater to e-commerce companies which only require assistance with specifi aspects of their logistics operations. We provide flexible and scalable services that adapt to varying client requirements in unbundled supply chain solutions in first mile, line-haul or last mile only modules.
OBJECTS OF ISSUE
1. Capital expenditure towards set-up of new processing centres with automation and new fulfilment centres.
2. Investment in computers and information technology (“IT”) equipment.
3. Investing in enhancement of technological and data science capabilities including cloud infrastructure.
4. Repayment/ prepayment, in full or in part, of certain borrowings availed of by our Company including payment of the interest accrued thereon.
5. General corporate purposes and unidentified inorganic acquisitions.
Qualitative Factors
- India’s only pure-play B2C e-commerce logistics solution provider, with widest pan-India reach, well positioned to benefit from the rapid growth of e-commerce in India.
- Deep penetration in high-growth Tier-2 regions of India, which is difficult to replicate.
- Our proprietary and advanced technology architecture.
- Our asset-light, nimble and capital efficient business model.
- Our customer-focused approach is led by an experienced management team.
Comparison of Accounting Ratios with Peer Group Companies :-
- Blue Dart Express Limited
- Delhivery Limited
