Ecommerce Cos Saw 15% YoY Growth This Festive Season: Delhivery

Ecommerce Cos Saw 15% YoY Growth This Festive Season: Delhivery

SUMMARY

Barua said the growth was largely in line with earlier estimates where Redseer said ecommerce GMV in India will grow 20%

The Delhivery CEO added the GMV growth was around 15% YoY but volume growth was only in the 11-12% range

Delhivery has posted a Q2 FY24 net loss of INR 102.9 Cr, down 59.5% YoY

The gross merchandise value (GMV) for ecommerce companies working in India grew 15% year-on-year (YoY) this festive season, Delhivery cofounder and CEO Sahil Barua said during the company’s earnings call on Saturday (November 4).

According to him, shipment volumes by logistics companies are typically considered a good metric to judge growth in the ecommerce space. Barua said the growth was largely in line with earlier estimates where Redseer analysts said ecommerce GMV in India will grow 20% this year to touch INR 90,000 Cr

“The growth this year was more or less what we expected. There were questions about growth but it does appear that there is appetite from customers to spend online,” Barua added.

Barua’s comments also come after the listed logistics major had said the ecommerce industry will grow by 15-20% YoY. The Delhivery CEO added the GMV growth was around 15% YoY but volume growth was only in the 11-12% range.

That was likely as Delhivery saw fairly significant growth in the heavy consumer goods category, which includes large electronics, consumer durables, home furnishings, furniture and more. The listed logistics major also noted that early trends showed that customers were purchasing expensive items like TVs, refrigerators and other large items because they were available at a steeper discount.

Barua added that large ecommerce categories will be the key to driving GMV growth going forward. Further, the number of D2C brands coming up was also encouraging and they will be another large driver of ecommerce growth in the years to come, per the company.

“It’s not like an Amazon will get a discount but you charge an arm and a leg to everybody else. That’s not appropriate. Our structural pricing for a D2C player and another marketplace is not different,” Barua said. “However, the size and kind of products D2C companies ship result in better yields for us,” he added.

Ecommerce remains an important area for Delhivery, as the company claims to ship around 6.7 Mn parcels per day. The listed logistics major has partnered with both major ecommerce platforms such as Amazon to D2C brands to enable shipping across its network. Delhivery also partners with many third-party logistics providers such as Shiprocket to further offer its services.

Delhivery reported its financials for Q2 FY24 today, posting a net loss of INR 102.9 Cr, down 59.5% from INR 254.1 Cr reported in the corresponding period of the previous fiscal.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Ecommerce Cos Saw 15% YoY Growth This Festive Season: Delhivery-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Ecommerce Cos Saw 15% YoY Growth This Festive Season: Delhivery-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Ecommerce Cos Saw 15% YoY Growth This Festive Season: Delhivery-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Ecommerce Cos Saw 15% YoY Growth This Festive Season: Delhivery-Inc42 Media
Ecommerce Cos Saw 15% YoY Growth This Festive Season: Delhivery-Inc42 Media
You’re in Good company