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The Indian logistics sector is among one of the fastest-growing and the most important sectors in the country, with a market size of over $200 billion. Being said, logistics startups in India also play a crucial role in driving the growth of our country’s logistics sector. The growth of the e-commerce industry in India has enabled startups dealing in logistics to scale up their business and tap into other areas through technology. For decades, retailers were only relying on companies such as India post and FedEx. But, through technological advancements and streamlining the logistics process, these startups has redefined the traditional logistics model. Thus, making it more agile and economical. They are also offering new and innovative services that are meeting the needs of the growing e-commerce market and other industries.
Logistics startups in India – 2023
In 2018 the ranked India ranked at 44 in the Logistics Performance Index (LPI) amongst 160+ countries across the world (Source: World Bank report, 2018). Where, LPI is a biennial index that helps measures the performance of countries with respect to key logistics areas, including customs clearance, infrastructure, international shipments, tracking and tracing, etc. However, this ranking has been improved in the recent yeas, from 44 to 39 in 2023 due to several factors, such as increase in the logistics startups in India with the boom of e-commerce, more focus of government on infrastructure development, and so on.
Best logistics startups in Hyderabad
|Name of startups or company||Year||Type of startups||Services|
|Midgrad Electric Private Limited||2019||Technology logistics startups||Charging stations for electric vehicles operating using the application.|
|2015||E-commerce logistics||Providing services in helping brands to create online markets.|
|Dhundhoo||2016||AI logistics startups||An AI-based one-tracking platform for all the needs related to tracking.|
|Zippr Private Limited||2014||Technology logistics startups||Largest company dealing with digitisation of addresses.|
|Gelatica||2018||B2B logistics startups||Provide B2B in customisation of ice creams for premium hotels.|
|Dual Triangles||2023||AI logistics startups||Making logistics optimised with digitisation and AI.|
Best logistics startups in Bangalore
|Name of the business or startups||Year||Type of startups||Services|
|Hutech Team||2019||Technology logistics startups||Helping businesses in creating mobile and web-based solutions.|
|HappyLocate||2016||Last mile logistics startups||Provide a one-stop solution for all the needs related to relocation in the country|
|KarryNow||2021||Technology logistics startups||Provide a local delivery platform led by women in rural places.|
|Boxigo||2019||Technology logistics startups||Provide house shifting safe and affordable experience using technology to traditional movers and packers.|
|eShipz.com||2019||Last mile logistics startups||Helps in automation of the process of shipping for medium and large businesses.|
Best logistics startups in Chennai
|Name of the business or startups||Year||Type of startups||Services|
|6Storage||2011||Technology logistics startups||A software platform dealing with self-storage management for operators|
|Stockarea||2018||Last mile logistics startups||Deals with the warehousing requirements across the country.|
|Smart Gladiator LoadProof||2017||Technology logistics startups||Dealing with cloud-based centralised service for video and photo documentation.|
|2021||Last mile logistics startups||Help in connecting the customer transporter without any intervention of 3rd party.|
|Newage Software Solutions||2022||B2b logistics startups||eFreight warehousing system management.|
Best logistics startups in India
- Blackbuck in Bangalore
- Edgistify E-commerce in Mumbai
- Delhivery in Gurgaon
- Ecom Express in New Delhi
- Rivigo in Gurgaon
- Shadowfax in Bangalore
- Qikpod in Bangalore
Types of logistics
Here are some of the common types of logistics:
- Inbound logistics- All the inbound resources transportation, receipt and storage required for the product manufacturing are inbound logistics.
- Outbound logistics- It requires the transportation of finished goods from a manufacturing unit to the respective supply chain link.
- Reverse logistics- It is the area of the supply chain process that deals with the return orders that are sent back to the distribution units.
- Third-party logistics– the activity of outsourcing the services related to logistics.
- Fourth-party logistics- It refers to the operating model that deals with providing a seamless solution of supply chain for the business.
- Green logistics- It is the process of policy development and implementation in the long term to reduce the environmental consequences of operations related to logistics.
Challenges faced by Indian logistics startups
There are several challenges faced by logistics startups in India. The most common is inadequate infrastructure. The infrastructure in India still lacks proper facilities related to storage, and distribution and has an underdeveloped transportation system.
Apart from this, they also face regulatory issues in obtaining licences and permits. And the Indian government needs to simplify regulations and procedures to make it easier for businesses to operate. Other issues such as lack of fund accessibility, financial-related incentives, and ease of doing business create hurdles in the expansion of startups.
Key trends in the Indian logistics startups sector
Here are some of the key trends in the Indian logistics startups sector in 2023:
- Focus on technology: These logistics startups are increasingly using technology to improve their operations. This includes using artificial intelligence (AI) and machine learning (ML) to optimise delivery routes, track shipments in real time, and provide predictive analytics.
- Expansion into new markets: They are expanding into new markets, such as tier II and tier III cities, as well as rural areas. This is being driven by the increasing demand for logistics services in these markets.
- Offering new services: These startups are offering new and innovative services, such as same-day delivery, cold chain logistics, and last-mile delivery. These services are meeting the needs of the growing e-commerce market and other industries.
It is identified from the report that startups in the logistics industry are providing scalable and adaptable solutions to the changing requirements of the business. Using technologies such as machine learning, artificial intelligence and data analytics, logistics companies are not only optimising operations but also boosting their operational efficiency and improving customer satisfaction levels.
Apart from this, they are delivering services that are accessible when required, enabling the firms to quickly adopt the logistics capacity in response to changing seasonality and demands. They are delivering services that are not only improved but also economical.