Delhivery’s in a rush for its fledgling rapid commerce business to begin running

Subscribe to enjoy similar stories. Bengaluru: Logistics company Delhivery Ltd expects its three-month-old quick-commerce business to end this fiscal year with ₹100 crore in revenue and its new warehouses catering to online-first brands and e-commerce platforms to break even in a few months. The Gurugram-based firm is also looking to expand its quick-commerce business to major metropolitan cities in a few months, said Milind Sharma, Delhivery’s newly appointed head of rapid commerce and direct-to-consumer brands.

“While there are investments needed to build this business, we are keeping tight control on our costs. Our initial set of dark stores (small warehouses) launched in Bengaluru in January are already at 70% break-even level. The internal target is for many of them to hit break-even in the coming quarter," Sharma said.

Delhivery rolled out Rapid Commerce, a sub-two-hour delivery service, in January to cater to direct-to-consumer brands and e-commerce platforms, underscoring the growing demand for ultra-fast deliveries in India. As part of this, the company is setting up a network of dark stores in metro cities to enable such brands and platforms to deliver orders within a few hours or the next day. Also read | Delhivery’s growth hits a speed bump, but fixes are in motion Delhivery is also looking to cut the 7-9 months typically needed for a dark store in metro cities to turn profitable.

“There is scope for each store to break even in 4-6 months. To achieve this, we are ensuring productivity is high by closely monitoring store-level profitability. We are also using our proprietary technology for various functions such as last-mile routing," said Sharma.