India’s e-com logistics sector to exceed 10 billion parcels by FY28: Report

India’s ecommerce logistics industry is set to exceed 10 billion parcels by FY28, according to a report by Redseer Strategy Consultants. The industry recorded over 4 billion parcels in FY23, with new categories, direct-to-consumer (D2C) brands, and continued growth in Tier II and beyond cities driving the growth. The report also noted that while the e-logistics market saw increased competition and pressure on yields from ecommerce players, the long-term outlook for the industry remained positive. The overall ecommerce logistics opportunity is projected to grow at a minimum compound annual growth rate (CAGR) of over 20%, with the D2C segment emerging as a strong growth area. D2C brands, including online-first new-age brands from Indian players, are expected to grow overall GMV at 35% 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, the report noted, opening up an opportunity for logistics players with relevant and customised offerings for D2C brands.
The report identified Delhivery as the largest player in the e-logistics industry, offering a wide range of services for D2C brands and a fast-growing non-ecommerce business that makes it more resilient in the face of recent macro trends in the ecommerce space.