The already overcrowded logistics space has another entrant with Smart Express, founded by former senior Blue Dart official Yogesh Dhingra, which is launching its services commercially this week, playing on the discount card which will represent on average 20% of the price. of the current market.
Prior to launching Smart Express, which was launched smoothly in early October, Dhingra was CFO and COO of Blue Dart, one of the leading airline logistics companies.
The national logistics industry is fragmented with more than 1,000 players, which include large national and international players like Allcargo, Blue Dart and India Post; and DHL, UPS and FedExpress, apart from many start-ups focused on e-commerce deliveries.
According to industry reports, the domestic market is worth $ 215 billion and growing 10.5 percent annually. But, of that total, only around 15% of the global market is made up of organized players and the online vertical is worth around $ 20 billion, which is expected to grow into a market of $ 30 billion by 2025.
Dhingra, an industry veteran with nearly three decades in the logistics space, told PTI that Smart Express will primarily focus on institutional customers and offer an average 20% discount off the market rate, and start its operations before Diwali.
The smooth launch has taken place in all of the first 8 metros, and with the commercial launch, it will serve 30 cities and have 60 service centers within a month, he said, adding that by now next December, it will serve the first 100 cities.
The company has already hired 550 people and the majority of them have received ESOPS (employee share ownership plans) and the workforce will reach 750 by December, Dhingra said, adding that it would hire 150 people each quarter.
On the client side, he said the focus will be on institutional players and will mainly cover those in BFSI (banking, financial services and insurance), e-commerce, electronics and pharmaceutical / medical spaces.
âWe will start with only air service now and start the route from April. On both formats, we will offer at least 20 percent average savings, ” he said.
The company has secured seed capital of Rs 100 crore from IIFR India Private Equity Fund and Smiti Holding & Trading Company, which is the family office of Jalaj Dani, Dhingra said adding that of the total funding, Rs 85 crore comes from these investors and Rs 10 crore from it.
While the IIFR put in Rs 50 crore, Rs 35 crore came from Danis and Rs 10 crore from him and the other management team. He said 25 percent of equity was held by him / the group and employees and the remaining 75 percent was owned by investors.
(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)