Delhivery Ltd, the largest and fastest-growing 3PL express parcel (and heavy parcel) delivery player in India by volume and revenue as of fiscal 2021 and Q1 Fiscal 2022, is well poised to leverage growth opportunities in the express parcel segment. The express parcel segment is slated to grow at a CAGR of 28-32% and is expected to reach US $ 10-12 billion by fiscal 2026 from an estimated US $ 2.3 billion in size during fiscal 2020.
Delhivery had a market share of 20% of the overall e-commerce volumes (including captive players) for the first quarter of Fiscal 2022. India’s increasing GDP per capita income, growing middle-income segment, changing demography of working-age population such as Millennials and Generation Z, low-cost smartphones and reliable internet connectivity, along with increasing online shoppers and e-commerce marketplaces, are the key growth drivers for Delhivery’s business
The Express delivery segment has been driven by the growth of e-commerce and rising customer expectations for delivery speed. The e-commerce industry in India grew by 31% from fiscal 2018 to fiscal 2020 and is estimated to further grow by 30-33% from fiscal 2020 to fiscal 2026. Total e-commerce volume was estimated to be 1.5 billion shipments in fiscal 2020, which is expected to reach 8-9 billion by fiscal 2026, at a CAGR of 32-35%
The company has delivered more than 1 billion express parcel shipments since incorporation. The company’s shipment volume grew from 148.49 million orders in fiscal 2019 to 289.20 million orders in fiscal 2021 on an annual basis, representing a CAGR of 40%. In the three months ended June 30, 2021, the company delivered 101.69 million shipments.
In the three months ended June 30, 2021, 18,600 active customers have used the company’s express parcel delivery services. The company’s customers include e-commerce marketplaces, vertical e-commerce retailers, D2C brands, Omni-channel retailers, SMEs, banks, and financial institutions.
Delhivery express parcel delivery network serviced 17,045 PIN codes in the six months ended June 30, 2021, covering 88.3% of the 19,300 PIN codes in India as of June 30, 2021 (per India Post). It is capable of handling consignments of up to 10 kilograms with same-day and next-day capabilities and 48-96 hour deliveries for long-distance orders.
The company provides value-added services such as reverse logistics for returns with quality inspection and product replacement services. It also provides person-specific deliveries involving delivery to a specified person after validating the person’s identity; address-specific deliveries involving delivery to an address specified by the shipper (and not the recipient), time-specific delivery involving delivery within a time slot provided by the recipient offer, cash on delivery and other modes of payment on delivery.