Delhivery
Description
We are back with our second episode of Disruption Diaries, where we will deep dive on Delhivery, a disruptor company to the age old logistics business.
From its founding in 2011 to becoming a $3 billion company and a market leader in the logistics space in India, where 1 in every 4 e-comm parcels are handled by Delhivery. Their vision is to be the "Operating System for Commerce."Broadly, in this episode, we deep dive on
- Why is logistics important,
- The founding story of Delhivery
- Its business model and key products
- The mesh network (vs hub and spoke) that sets them apart from competitors
- Its financial performance and
- What lies ahead for this company
Hope you enjoy this. And, do let us know your suggestions on what other companies you would like us to cover
Key timestamps for each major topic0:00 – Introduction
Hosts (Shantanu & Jeenal) introduce themselves and the Delhivery episode.
2:00 – Logistics industry context & importance
How logistics contributes to GDP, the government’s targets, and India’s logistics cost.
4:00 – Fragmentation and opportunity in Indian logistics
Discussion of the unorganized sector, growth rates, and potential for organized players.
6:00 – Delhivery’s founding story
Origin in 2011 as a hyperlocal express service; founding team backgrounds (Sahil Barua, Mohit Tandan, Bhavesh Manglani, Surat Saharan, Kapil Bharti).
11:00 – Delhivery’s business model and scale
Fully integrated logistics, service reach (18,700 pin codes), “operating system for commerce”, and vision.
14:00 – Key revenue streams & products
Parcel/courier business (60%+ revenue), daily order volumes, part truck load, full truck load, supply chain solutions.
18:00 – Growth opportunities
Warehousing, cross-border logistics, reverse logistics, and the “fulfilled by Delhivery” analogy.
23:00 – Cash flow challenges, payment cycle
Credit terms with partners vs. clients, negative cash flows, and strategy for market share.
26:00 – What sets Delhivery apart
Shift from hub-and-spoke to mesh network, technology focus, autonomous robotics in warehouses, investment in drones.
30:00 – Spoton acquisition and integration
2021 Spoton merger, synergy and challenges, impact on part truck load segment.
32:00 – Rivigo vs. Delhivery
Business model and strategic differences: asset-heavy vs. asset-light, leadership stability, funding/dilution, last-mile “mesh” advantage.
35:00 – Financials and profitability
Shift to profitability, revenue growth, improvement in customer concentration risk.
38:00 – Current and future challenges
Competition from in-house logistics (Amazon/Flipkart), quick commerce, customer concentration, market risks, and cloud warehousing.
42:00 – Technology trends and future opportunities
Cloud warehousing, making warehousing a variable cost, elastic demand fulfillment.
44:00 – Sustainability and EVs
Role of electric vehicles in logistics, cost savings, current barriers in “middle mile”.
47:00 – Further opportunities
Quick commerce as a service, regional/national shipping, “Delhivery One” platform as a tech enabler.
50:00 – Closing thoughts
Why Delhivery is strongly positioned, final host impressions, request for listener suggestions
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