The Indian logistics sector, already a $200 billion market, is set to grow at over 10 % CAGR in the next five years to reach around $320-$330 billion. Hyperlocal was earlier estimated to grow over 32% until 2025. This was projected at INR 2306 crores by 2020. Logistics sector is also constantly grappling with inefficiencies, however, because of which the cost of Indian logistics is 13 to 14 percent of GDP. In developed nations, the cost to GDP ratio is single digit hovering around 8–10%. Rising significance of logistics services in every sector gave rise to hyperlocal logistics. The global hyperlocal service industry is currently in a state of transition. Emerging economies are witnessing rapid growth and developed economies are showing signs of value acceleration.

To give a pretext of the economy and business, 2009 is the time when e-commerce started again in India after the first e-commerce bubble burst. It was around 2011, when we saw e-commerce growing exponentially and a mushroom of startups starting in the vertical and horizontal space. We saw global investors focusing on India and infusing funds to the new startups as well as the 2nd round of funding to the ones which were growing. This is the time when even TV shopping was doing well and we saw companies like Homeshop-18 , Naaptol and many more regional channels started doing brisk business. This was the period when e-commerce was growing at a CAGR of more than 100%. This resulted in new logistics models emerging and sudden surge of warehouse, fulfillment and consolidation centers coming up all across the country. Logistics tech-based companies, e-commerce logistics based companies started coming up and they attracted a good amount of investors ready to fund them as everyone was excited with the potential India had in the eCommerce and logistics space. While this all was growing at a fast speed, 2014 was the time when companies & supply chain experts started talking about hyperlocal and on-demand logistics. Retail companies started talking about being omnipresent and ways to enhance customer experiences. They also wanted to enter the e-commerce space and ensure they give customers the option to buy online. Indian Retail realized that Hyperlocal strategy has the potential to improve the scenario of Indian Retail. This was a new model in India at that time..

It was this time, when Logistics became an important part of any business than just a cost centre thought which prevailed earlier. Logistics was one of the biggest pressure points of the e-commerce industry in India. Hyperlocal was the need which everyone wanted. 2016 is when Hyperlocal revenues saw a growth of 41 % when compared to 2014. The market size more than doubled from USD 12 Billion in 2016 to USD 26 Billion in 2018. Post 2016, hyperlocal was forecasted to grow with a projected CAGR of 55% across 2018–2023. According to an estimate by Redseer, digital channels will account for 1.2% of India’s overall food and grocery market by 2023, compared to 0.2% in 2018.

For everyone’s benefit, Hyperlocal logistics is catering to the needs of a limited geographical area with a perimeter of a few kilometers. Hyperlocal operates within a local proximity to high population and retail density between your local markets stores selling products online with home delivery options. The hyperlocal marketplace has to work in partnership with a third party logistics partner. Grocery delivery, Food delivery, House Care, Essentials, Personal care services, Healthcare deliveries are the ones which helped hyperlocal rise. The USP of hyperlocal is the ability to deliver products and services at unbelievably faster speed giving better customer experience. Effective hyperlocal logistics is the amalgamation of technology with the retailers and the consumers.Hyperlocal strategy takes the delivery model adopted by online food delivery portals and applies it to other e-commerce portals. Hyperlocal strategy had. the potential to improve the scenario.

We heard names like Dunzo, Shadowfax, Swiggy, Delivery, Zomato, Foodpanda and Roadrunner started in India around late 2014 and 2015. Grofers, bigbasket and others are also few others who got added later and into the hyperlocal marketplace model. There were many more which opened and had to shut shop or got acquired. So, the Hyperlocal had taken shape and was doing well in India and growing.

Few of the 2015 deals worth highlighting are: