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Time of India
5 days ago
- Business
- Time of India
Ecommerce's in-house delivery turn flips third-party logistics biz script
The largest Indian ecommerce firms have moved deliveries in-house, hurting third-party logistics (3PL) players and leading to a consolidation in the sector. Amazon , Flipkart and Meesho now account for about 82% of India's ecommerce parcel volumes, according to a report by ICICI Securities. This has forced pure-play logistics operators to draw up new ways to stay relevant. As Meesho's parcel volumes are increasingly handled by its logistics arm Valmo, improving yields has become more important than chasing market share for 3PL companies, executives and analysts said. The Bengaluru-based online retailer, which caters to smaller towns and value-conscious shoppers, had historically worked with logistics providers including Delhivery , Ecom Express, Shadowfax and Xpressbees. Now, Valmo functions as an aggregator and allows sellers to choose a transporter to fulfil orders. 'Our channel checks indicate Meesho was routing around 70% of shipments through its captive arm Valmo in March 2025 compared to around 30% in March 2024, and 5% in March 2023. This indicates the growing control of horizontal platforms over logistics operations,' ICICI Securities said. Delhivery CEO Sahil Barua said at the company's recent earnings call that more than 100% of the logistics industry's profit pool currently resides with Delhivery, underscoring how many rivals remain loss-making. He said further consolidation is likely after the Rs 1,407 crore Ecom Express acquisition in April. 'Despite Delhivery handling a large share of Meesho volumes, the impact on others may be more significant. Delhivery has already begun focusing on yields and exploring segments like rapid commerce and hyperlocal delivery,' said a senior executive at a logistics firm. Delhivery's acquisition of Ecom Express strengthens its position in the 3PL space, with the two companies having 100% customer overlap and 95% revenue overlap. For Ecom Express, key clients include Meesho, Amazon, Shiprocket and Nykaa. Delhivery's strategy Analysts said Meesho was unlikely to shift all parcel volumes to its own network, which could give Delhivery some pricing power. 'Delhivery's muted growth in ecommerce shipments in FY25 was driven by competitors undercutting on price. But with consolidation playing out, it may regain pricing leverage,' said a Mumbai-based internet analyst. The company's express parcel revenue and volumes rose 5% and 2% year-on-year, respectively, in FY25. Barua acknowledged pricing pressure from rivals but said it should ease. 'Historically, Delhivery has led pricing in this industry. Last year was an exception,' he said. 'Competitors made pricing decisions to gain short-term share, which we believed were unsustainable as they implied negative gross margins.' JM Financial analysts said headwinds for Delhivery may subside in the coming quarters as Meesho has limited scope for further shifting volumes and quick commerce firms are slowing down expansion. 'Management expects growth to return in FY26 with the Ecom Express acquisition, retaining over 30% of volumes. Positive impact was already visible in April and May,' the report noted.
Time of India
5 days ago
- Business
- Time of India
Logistics firms under pressure; The race to deliver style
Logistics firms under pressure; The race to deliver style Want this newsletter delivered to your inbox? Also in the letter: Ecommerce's in-house delivery turn flips third-party logistics biz script Driving the news: In March 2025, Valmo handled over two-thirds of Meesho's shipments, up from 30% a year earlier and just 5% in previous years, according to an ICICI Securities report. The Bengaluru-based online retailer once relied heavily on third-party players, including Delhivery, Ecom Express, Shadowfax, and Xpressbees. Now, Valmo acts as an aggregator, letting sellers choose their preferred transporter. Ecom Express, now part of Delhivery, still counts Amazon, Meesho, Shiprocket and Nykaa among key clients. Yes, but: Growth muted: Also Read: Rapid delivery's in fashion at ecommerce, new-age apparel companies Here's the catch: VC rush: The data play: Way ahead: Also Read: IT's growth search takes them to doors of mid-market firms New avenues: But, why: Number-wise: Also Read: Flipkart exits Blackbuck, Aditya Birla Fashion in block deals worth over Rs 1,250 crore ABFRL exit: Blackbuck stake sale: Other Top Stories By Our Reporters Swiggy may recover quick commerce share despite widening losses: Morgan Stanley | LTTS bags deal to set up offshore development centre for US firm Tennant: Global Picks We Are Reading Happy Thursday! With Indian ecommerce firms insourcing deliveries, the third-party logistics sector is likely to witness consolidation. This and more in today's ETtech Morning Dispatch.■ India IT shifts focus■ Flipkart cashes out■ Morgan Stanley on SwiggyAs Indian ecommerce companies bring deliveries in-house, pure-play logistics companies are scrambling to stay relevant , a shift that is likely to accelerate consolidation in the Flipkart and Meesho account for 82% of India's ecommerce parcel volumes. Meesho, for instance, increasingly relies on its logistics arm, Valmo Analysts believe Meesho won't fully internalise logistics. Still, third-party operators remain in an earnings call, Delhivery CEO Sahil Barua said the company cornered more than 100% of the industry's profit pool , calling out rivals for ongoing losses. After acquiring Ecom Express for Rs 1,407 crore in April, Barua said further consolidation is its bullish stance, Delhivery posted subdued ecommerce numbers in FY25. Express parcel revenue rose 5% year-on-year, while volumes edged up just 2%.New-age brands like Newme, Slikk, and Blipp, along with ecommerce players Myntra, Ajio, and Nykaa, are embracing the ultra-fast fashion delivery trend. The latest to join the race is Bengaluru-based D2C brand Snitch, which last week kicked off a pilot for its quick delivery service in the is it worth the hype?Some industry insiders regard this as yet another shiny take on the quick commerce narrative. Unlike groceries, fashion is an experiential category. Moreover, supply chains (or logistics) are more complex, and high return rates render ultra-fast delivery a challenging model to are piling in. Slikk, which promises delivery in under 60 minutes, recently raised $10 million in a round led by Nexus Venture Partners. Snitch secured $40 million from 360 One Asset to fund offline expansion and a deeper push into quick stay ahead of fast-moving trends, brands are leaning on proprietary AI tools and in-house data science teams. These systems sift through social media chatter, search patterns, and shopping behaviour to forecast demand, sometimes even before the customer knows what they buzz is real, but so are the hurdles. Brands still need to sustain consumer excitement, manage inventory risk, and tackle return rates. Quick fashion may be gaining ground, but the jury's still out on whether speed alone will win the a challenging year, India's IT industry is targeting growth beyond the Fortune Global 2,000 and Fortune 5,000, focusing on an underpenetrated segment: smaller and mid-sized enterprises with annual revenues of $1-5 large clients slow to deliver revenue, the natural pivot has been towards smaller companies, typically late adopters of technology, are now ramping up investments in cloud, cybersecurity, and digital transformation, driven by the rise of AI and accelerated digitisation. This shift presents a new opportunity for Indian IT cite several reasons these clients could prove lucrative, including quicker decision-making, a lower barrier to entry, and a broader scope for delivering tech many large enterprises are establishing global capability centres (GCCs) in lower-cost locations, such as India, and insourcing much of their tech work. This has pushed Indian IT majors to look beyond their traditional client opportunity is real, but still early. Mid-market clients (with $100 million to $5 billion in revenue) contribute only 20-30% of total revenue for the top five Indian IT firms – TCS, Infosys, HCLTech, Wipro, and Tech Mahindra. Large enterprises continue to account for 60-70% of their has fully exited its stakes in Aditya Birla Fashion and Retail (ABFRL) and Zinka Logistics, the parent company of trucking platform Blackbuck, offloading shares worth several hundred crores this Wednesday, Walmart-owned Flipkart Investments sold its entire 6% stake in ABFRL through a block deal worth Rs 587.7 crore. The transaction involved 73.17 million ABFRL shares changing hands at Rs 80.32 per share, a 6.6% discount to the previous closing price.A day earlier, Quickroutes International, another Flipkart subsidiary, offloaded its entire 9% stake in Blackbuck, according to exchange data. The shares were sold in the Rs 420.06–420.25 range, valuing the deal at Rs 671.76 house Morgan Stanley believes that online food and grocery delivery company Swiggy's quick commerce business has a bright future. Although quick commerce has helped drive Swiggy's revenue growth, the company's expenditure on the sector continues to drag its bottom line part of this collaboration, LTTS will establish a dedicated engineering centre in India to support Tennant's new product development, lifecycle management, and other core operations.■ Google DeepMind's CEO thinks AI will make humans less selfish ( Wired ■ Snap's Spiegel: Company is on 'cusp' of computing transformation ( The Information ■ Frugal tech: The start-ups working on cheap innovation ( BBC
Economic Times
6 days ago
- Business
- Economic Times
Ecommerce's in-house delivery turn flips third-party logistics biz script
The largest Indian ecommerce firms have moved deliveries in-house, hurting third-party logistics (3PL) players and leading to a consolidation in the sector. Amazon, Flipkart and Meesho now account for about 82% of India's ecommerce parcel volumes, according to a report by ICICI Securities. This has forced pure-play logistics operators to draw up new ways to stay relevant. As Meesho's parcel volumes are increasingly handled by its logistics arm Valmo, improving yields has become more important than chasing market share for 3PL companies, executives and analysts said. The Bengaluru-based online retailer, which caters to smaller towns and value-conscious shoppers, had historically worked with logistics providers including Delhivery, Ecom Express, Shadowfax and Xpressbees. Now, Valmo functions as an aggregator and allows sellers to choose a transporter to fulfil orders. 'Our channel checks indicate Meesho was routing around 70% of shipments through its captive arm Valmo in March 2025 compared to around 30% in March 2024, and 5% in March 2023. This indicates the growing control of horizontal platforms over logistics operations,' ICICI Securities CEO Sahil Barua said at the company's recent earnings call that more than 100% of the logistics industry's profit pool currently resides with Delhivery, underscoring how many rivals remain loss-making. He said further consolidation is likely after the Rs 1,407 crore Ecom Express acquisition in April. 'Despite Delhivery handling a large share of Meesho volumes, the impact on others may be more significant. Delhivery has already begun focusing on yields and exploring segments like rapid commerce and hyperlocal delivery,' said a senior executive at a logistics firm. Delhivery's acquisition of Ecom Express strengthens its position in the 3PL space, with the two companies having 100% customer overlap and 95% revenue overlap. For Ecom Express, key clients include Meesho, Amazon, Shiprocket and Nykaa. Also Read: Delhivery rolls out intracity services for customers in Bengaluru Delhivery's strategy Analysts said Meesho was unlikely to shift all parcel volumes to its own network, which could give Delhivery some pricing power. 'Delhivery's muted growth in ecommerce shipments in FY25 was driven by competitors undercutting on price. But with consolidation playing out, it may regain pricing leverage,' said a Mumbai-based internet analyst. The company's express parcel revenue and volumes rose 5% and 2% year-on-year, respectively, in FY25. Barua acknowledged pricing pressure from rivals but said it should ease. 'Historically, Delhivery has led pricing in this industry. Last year was an exception,' he said. 'Competitors made pricing decisions to gain short-term share, which we believed were unsustainable as they implied negative gross margins.'JM Financial analysts said headwinds for Delhivery may subside in the coming quarters as Meesho has limited scope for further shifting volumes and quick commerce firms are slowing down expansion.'Management expects growth to return in FY26 with the Ecom Express acquisition, retaining over 30% of volumes. Positive impact was already visible in April and May,' the report noted.
Time of India
6 days ago
- Business
- Time of India
Ecommerce's in-house delivery turn flips third-party logistics biz script
Delhivery CEO Sahil Barua said during the company's recent earnings call that further consolidation in the industry is likely after the sale of Ecom Express to Delhivery for Rs1,407 crore in April. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The largest Indian ecommerce firms have moved deliveries in-house, hurting third-party logistics (3PL) players and leading to a consolidation in the sector. Amazon , Flipkart and Meesho now account for about 82% of India's ecommerce parcel volumes, according to a report by ICICI Securities. This has forced pure-play logistics operators to draw up new ways to stay Meesho's parcel volumes are increasingly handled by its logistics arm Valmo , improving yields has become more important than chasing market share for 3PL companies, executives and analysts said. The Bengaluru-based online retailer, which caters to smaller towns and value-conscious shoppers, had historically worked with logistics providers including Delhivery , Ecom Express, Shadowfax and Xpressbees. Now, Valmo functions as an aggregator and allows sellers to choose a transporter to fulfil orders.'Our channel checks indicate Meesho was routing around 70% of shipments through its captive arm Valmo in March 2025 compared to around 30% in March 2024, and 5% in March 2023. This indicates the growing control of horizontal platforms over logistics operations,' ICICI Securities CEO Sahil Barua said at the company's recent earnings call that more than 100% of the logistics industry's profit pool currently resides with Delhivery, underscoring how many rivals remain loss-making. He said further consolidation is likely after the Rs 1,407 crore Ecom Express acquisition in April.'Despite Delhivery handling a large share of Meesho volumes, the impact on others may be more significant. Delhivery has already begun focusing on yields and exploring segments like rapid commerce and hyperlocal delivery,' said a senior executive at a logistics firm. Delhivery's acquisition of Ecom Express strengthens its position in the 3PL space, with the two companies having 100% customer overlap and 95% revenue overlap. For Ecom Express, key clients include Meesho, Amazon, Shiprocket and said Meesho was unlikely to shift all parcel volumes to its own network, which could give Delhivery some pricing power. 'Delhivery's muted growth in ecommerce shipments in FY25 was driven by competitors undercutting on price. But with consolidation playing out, it may regain pricing leverage,' said a Mumbai-based internet company's express parcel revenue and volumes rose 5% and 2% year-on-year, respectively, in FY25 Barua acknowledged pricing pressure from rivals but said it should ease. 'Historically, Delhivery has led pricing in this industry. Last year was an exception,' he said. 'Competitors made pricing decisions to gain short-term share, which we believed were unsustainable as they implied negative gross margins.'JM Financial analysts said headwinds for Delhivery may subside in the coming quarters as Meesho has limited scope for further shifting volumes and quick commerce firms are slowing down expansion.'Management expects growth to return in FY26 with the Ecom Express acquisition, retaining over 30% of volumes. Positive impact was already visible in April and May,' the report noted.
Fashion Network
19-05-2025
- Business
- Fashion Network
Delhivery's net profit rises to Rs 72 crore in FY25 Q4
Gurgaon-based logistics business Delhivery saw its operating revenue increase to Rs 2,191 crore and its net profit rise to Rs 72 crore in the fourth quarter of the 2025 financial year. "We continue to deliver steady performance in our core transportation businesses," said Delhivery's CEO and co-founder Sahil Barua, ET Tech reported. "Our ongoing measures to improve profitability are visible in Q4 numbers and we expect continued momentum on this front as growth picks up in FY26." The business operating revenue increase was 5% compared to the fourth quarter of the 2024 fiscal year, the Economic Times reported. Delhivery's profit also represented positive growth compared to its net loss of Rs 68 crore during the fourth quarter of the 2024 financial year. Prioritising growth ahead of general market expansion, Delhivery's largest vertical remains its express parcel segment which saw 1% year on year volume growth in the past quarter. The business' total operating revenue for the 2025 financial year was at Rs 8,932 crore, representing a year on year increase of 9.7%. Following a net loss of Rs 249 crore in the 2024 financial year, Delhivery reported a net profit of Rs 162 crore for the full 2025 financial year.
