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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.

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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.

“Despite funding headwinds in ecommerce/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-ecommerce segments like C2C, PTL/FTL, and wider SCM services,” said Mrigank Gutgutia, Partner, Redseer Strategy Consultants.

“Players who build robust capabilities and offerings to serve this demand effectively will fundamentally be more resilient in these challenging times and will be better positioned for long-term market share and yield leadership,” he added.

Redseer Strategy Consultants is a tech- and data-driven consultancy firm that advises new-age businesses and investors. The firm has 1,000 consultants and a presence in various regions, including India, the Middle East, and Southeast Asia.