Companies provide last-mile delivery support to online ventures. Some portals take orders for offline retailers and handle deliveries as well

Seed investment

Rs.3-15 lakh

(For single city setup)

 

Market size

Logistics market size in India $100 billion DELOITTE

 

Target customers

Online and offline retailers

 

How long to earn fi rst reveneus

From the very first day

 

It was a road trip across the hills and along backwaters of Kerala in 2009 that changed the career of Afsal Salu, 31, and two of his IIM batchmates. Quitting a coveted job at Unilever, Salu and his friends launched a logistics business built on a technology backbone,an idea they had presented in their MBA classroom way back in 2003. They formed Delyver Retail Network, which would deliver food and groceries to homes in Bangalore.

A logistics startup needs to build an IT platform, which typically takes four to six months, besides arranging vehicles for delivery. “Costs for a city based logistics venture can be controlled by hiring mini vans, which would drop goods in a neighbourhood that can be picked up by delivery boys,” says TA Krishnan, founder CEO of E-Com Express, which launched operations in 36 cities in North India this January. The young venture has now set up large warehouses due to increasing demand. Others like Chottu and Delhivery also provide logistics support to ecommerce firms.

Delyver’s Salu fulfilled his first order while on a lunch break from Unilever. “It’s a capital intensive business. We started with a seed capital of `3 lakh,” he says. His parents, both doctors in Kerala, were alarmed to hear that their son, an IIM graduate, was delivering cakes and food to people’s homes.

But the sector is a hot area for new startups as India’s overall logistics market is estimated at over $100 billion, growing at a rate of about 20%. The sector employs about 45 million people in the country, according to consulting firm Deloitte.

 

Top ventures

Delyver Retail Network,
Chottu.in, Delhivery, E-Com Express

 

With the rising middle class  purchasing power, there is enough money to be made in B2C logistics

TA KRISHNAN
Founder CEO of E-Com Express