Post Date : July 11, 2022
Founded in 2012, Borzo (formerly WeFast) was among the first solution providers in India to equip and empower SMEs with fast and precise deliveries. With changing consumer behaviour and the growing market, Brozo has been performing more than 3 million deliveries per month. By staying true to its philosophy of enhancing the ease of business operations for SMEs, they provide seamless logistics operations and ensure that the parcels are delivered on the same day intra-city. To get a better understanding of the company’s USP, its philosophy, and its growth and future plans, along with some other pertinent questions, Logistics Insider got into a candid chat with Eugene Panfilov, General Manager (India) at Borzo. Excerpts follow:
What are some of the biggest USPs of Borzo? And, what innovation has the company brought to stay ahead in a competitive hyperlocal delivery market?
Our USP is our tech platform itself, which allows our customers to place orders on demand and get instant responses from delivery partners within minutes. This is very convenient for growing businesses because there are many businesses that cannot predict the customer inflow.
Another USP is the fact that we cover weight up to 20 kilos, which major competitors do not offer. We have fair and transparent pricing for everyone on our platform. Also, we are not restricted by geographies. Ever since our launch, we are serving all the pin codes, with a major presence in all the tier I and tier II cities.
Lastly, we are developing 3 products that will SMEs and enterprises to get hyperlocal last-mile delivery on the same day, with cost efficiency and a dedicated rider support model.
Indian SMEs are betting big on the newly emerging models of e-commerce. How is Borzo, with its technology ecosystem, empowering Indian SMEs?
The relations with SMEs are the bread and butter for Borzo. We provided a rare-time option of the same intracity delivery and allowed SMEs to reach customers instantly. When we started, e-commerce was just developing. Just a few years back, we had to wait for delivery from most e-commerce websites for days, and in some cases, even for weeks.
In some cases, classic logistics companies set clear volume targets. So, when small businesses approached if they didn’t meet substantial volumes, they were turned down. We do not set such limits. Also, some SMEs do not always operate in all territories. They need city deliveries and not always intra-city delivery. So, Borzo was and still is a perfect choice for SMEs. Delivery happens on the same day, in most cases, it’s a matter of a couple of hours. We don’t limit the business with the number of delivery they place within the platform. In fact, we provide a discount for significant volumes. Borzo empowers SMEs and MSMEs by providing them instant reach to their customers.
Aggregating enough order volumes to break even is a struggle for the low-margin last-mile delivery segment. How does Brozo try to find a solution to this problem?
This is a very old debate about the scaling of the company and increasing profitability. A lot of companies pre-maturely start scaling up without ensuring that they create value on the market and they create value for their shareholders. We in Borzo, since the beginning, made some strategic decisions that allowed us to grow from the early stages. But, we never entered a scaling phase even as a startup without assuring that our unit economy is positive. If you can maintain a unit economy positive, the business has a future and it looks attractive for the development, and there is no barrier to your scale. So, you see a clear path to profitability.
This is an abridged version of the original interview that was published in the June edition of the Logistics Insider magazine. To read the complete article, Click here.