Delhivery sees next big buck from smaller towns as merchants take to ecommerce frenzy
Delhivery has stepped up its outreach to small and medium businesses (SMBs) in smaller towns, sensing a growing opportunity as local businesses seek to tap customers beyond their towns and states.
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“There has been an increasing penetration of consumption as well as supply, with brands emerging from both tier 2 and 3 cities,” Mohammed Ali, head of SME business at Delhivery, told ET. “More people want to explore direct brand platforms instead of relying solely on horizontal marketplaces.”
Delhivery, majority owned by FIIs, uses proprietary tech solutions to drive its logistic operations.
More than a third of its SMB business comes from smaller cities. Vadodara, Raipur and Thiruvananthapuram have seen a 40% jump in ecommerce orders in calendar 2024 in the direct to consumer (D2C) market, Ali said. Groceries (39%), fashion (27%) and beauty and care (13%) have seen steady growth, he said, citing shipment data.
Cities that were once content selling raw materials are now shifting to add value to realise better margins. “For instance, cities like Surat and Jaipur, which focused on raw material production, are now moving into manufacturing and design, while places like Varanasi are excelling in carpets and Tirupur in T-shirts,” Ali said.
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