E-commerce logistics in India to exceed 10 billion parcels by FY28 : Redseer

The e-commerce logistics industry in India, which recorded over 4 billion parcels in FY23, is expected to exceed 10 billion parcels by FY28 riding on new categories, and direct-to-consumer (D2C) brands along with growth in Tier 2 plus cities, says a Redseer report.

As per the Redseer report, the e-commerce sector in the long run remains an attractive bet with the minimum growth rate of (CAGR) 20%, comfortably exceeding 10 billion parcels by FY28, with D2C emerging as a strong growth segment within e-commerce.

The report suggested an overall growth of 35% GMV (gross merchandise value) for D2C brands in the next few years. A total of $ 33 billion of GMV is expected to be generated from D2C brands across all channels by CY27.

Logistics players with relevant and customized offerings for D2C brands can capture market share in this high-growth segment. They are also expected to have a stronger yield profile going forward.

“Despite funding headwinds in e-commerce and 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-e-commerce segments,”

Mrigank Gutgutia, Partner, Redseer Strategy Consultants

The report, identified logistics firm Delhivery as the market leader within the e-commerce 3PLs parcels in FY23, despite intensifying competition threats. As per Redseer, the wide set of offerings offered by Delhivery for D2C brands along with its fast-growing non-e-commerce business makes it better insulated from the recent macro trends in the e-commerce space and an overall resilient logistics business.

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