“Within the B2B segment, there is a lot of importance in spaces like aftermarket and spare parts that could sometimes take days to get delivered. Most of our customers in this segment were facing this challenge because of which their real sales got impacted,” said Abhishek Chakraborty, chief executive, DTDC Express told Mint.
“We spent the last 3-6 months to help them restructure their supply chain and now, some of our customers are exploring rapid commerce mechanism to help deliver those essential parts to their service engineers very quickly.”
DTDC has been in talks with large consumer durable brands across categories such as electronic accessories, televisions, mobiles, air conditioners, and refrigerators but did not disclose specific names.
Earlier this month, the company announced its entry into the rapid commerce space by launching 2-4 hour rapid delivery and same-day delivery services.
“Different brands, depending on their products and customer base, will need different solutions, and we now see that rapid delivery has reached a point where it is more than just ordering eggs or delivering daily groceries,” Chakraborty said.
“It is more of a fundamental change in consumer behavioural patterns, and with that, we see a certain kind of scale in the possibilities that emerge from this shift.”
The move comes as competition in the rapid delivery space intensifies, with new-age companies such as Delhivery and Xpressbees expanding their offerings.
Last week, listed third-party logistics player Delhivery said it expects its one-month-old rapid commerce business to generate revenue in ₹80-100 crore range by the end of the current fiscal year, underscoring the growing demand for ultra-fast deliveries in India’s e-commerce landscape.
Dark store expansion
Meanwhile, DTDC has established its first dark store in Bengaluru and is also looking at other areas such as Mumbai and Pune where it has already conducted some pilots and set up basic capabilities.
“We are looking at other alternative markets like Surat and Pondicherry as we believe a lot of incremental growth is likely to come from tier 2 and 3 areas. While metros will continue to be a big part of our initial demand, we are seeing a lot of potential beyond these areas as people are not that particular for a 10-minute delivery there,” Chakraborty said.
Also Read: Quick commerce firms brace for higher churn of dark store workers amid rising competition
He said some brands have realized that quick commerce—being a subset of rapid commerce—is not viable for all their products, as the associated costs can be significantly high. Businesses opting for quick commerce often face steep expenses in marketing, listing, and advertising, which can strain their budgets.
Not all companies can absorb these costs, prompting them to explore more cost-effective alternatives like 2–4-hour or same-day delivery, which provide speed without the added financial burden, he explained.
Last month, Redseer estimated that India’s retail market is projected to reach $1.5 trillion in the next four years, with logistics emerging as a critical enabler in this transformation. The rapidly growing demand across multiple channels presents a massive opportunity for brands but also introduces logistical challenges.
To meet these expectations, the role of logistics has evolved from being a backend function to a strategic enabler of growth through efficient supply chain management, according to the report.
DTDC’s Chakraborty anticipates at least 15-20 customers to switch to its latest rapid commerce model. “We are in talks with multiple customers across the country and many of our facilities are in the process of being upgraded to cater to their faster delivery needs.”
Rethinking operations
“We have spent a significant amount of time re-engineering our operations. This has also encouraged our customers to recalibrate their supply chains before they roll into this delivery mode in a full-fledged manner,” he said.
Founded in 1990 by Subhasish Chakraborty and Debasish Chakraborty, DTDC is one of the few logistic brands that serve customer-to-customer, B2B as well as business-to-customer segments. The Mumbai-based company has over 16,000 exclusive channel partners that contribute to its sales and service capabilities. It serves several industries including BFSI, pharma, consumer durables, IT, and the electronics industry.
Within the domestic area, it has two verticals – express parcels, which handles everything from documents, letters, and small packages to very large B2B products with the second being e-commerce where it claims to handle one in every six parcels. Beyond India, it also has a presence in the USA, Canada, UK, Singapore, Malaysia, and Australia, which together contribute over 21% of its revenues.
The company reported operating revenue of ₹2,235.6 crore in FY24, compared to ₹2,008.1 crore from a year earlier, as per data provided by market intelligence provider Tracxn. It posted a loss of ₹8.5 crore from a profit of ₹23.8 crore in FY23.
While the company claims to be well-capitalized to ensure its first set of pilots for its customers, it may explore other options to raise capital for its future expansion plans through public or private route.
In 2022, Mint reported that the company was in talks to raise ₹1,000 crore through an initial public offering and planned to use some of the proceeds towards strengthening its technology platform to compete with younger tech-enabled delivery companies that have helped fuel the rapid growth of e-commerce in India.
“Going forward, I think we are absolutely open to looking at all possibilities as these are businesses that need a lot of innovation and will need to be invested upon to get scale,” Chakraborty said, declining to comment on the IPO plans. “Our board actively continues to look at our investment horizons and how the company’s future capital expansion or infusion is needed to keep fueling the growth and profitability of the company. All options exist for us in the market.”
Also read | Quick commerce dark stores set to zoom but it will come at a cost
