Indian logistics giant Delhivery recently announced its partnership with private equity firm Nexus Ventures and cloud giant Amazon Web Services (AWS) to launch Velocity, a six-week startup accelerator program, to nurture and empower entrepreneurs and innovators in the logistics sector.
According to the company’s statement, The first edition of this accelerator program, which kicked off in August 2023, brought together leading financial and sectoral experts to provide incisive, industry-led mentorship to the selected startups.
It included 15+ sessions covering a wide range of topics essential for startups, from mentors including Vibhor Jain, President – Network Governance & COO of ONDC; Rohit Kapoor, CEO of Food Marketplace at Swiggy; and Naman Jain, Founder of Falcon Autotech.
Which startups have been selected?
Delhivery said a total of 20 early-stage startups were selected from a pool of 234 applicants, representing a diverse range of sectors. Among the selected startups were warehousing-focused entities like ODWEN, Warehouse, and Warehousity, showcasing innovations in the warehousing sector.
The cohort also included EV fleet providers such as EVIFY and Zyngo, reflecting advancements in electric vehicle fleet services. In the agritech sector, startups like Upjao Agrotech and E Sandhai were selected.
Additionally, aggregator platforms like Paapos, Hyphen SCS, and Loadexx were also part of the cohort.
Startups showcased their solutions to VCs
Startups, equipped with insights, knowledge, and practical advice in areas like people and culture, fundraising strategies, growth hacking, and profitability, showcased their solutions to Venture Capitalists and influential superangels.
Additionally, each startup was awarded AWS Activate Credits valued at $25,000. These credits can be used to access AWS cloud services, allowing startups to build and scale their technology infrastructure without facing high initial costs, the company informed in an exchange filing.
Vibhor Jain, President, Network Governance and COO of ONDC, said, “Open Networks like ONDC can address inefficiencies in the supply chains by enabling unlocks through an interoperable network of platforms/applications. These unlocks will enable wider discovery, improved logistics utilization, and cheaper credit, leading to improved efficiencies in the supply chain.”
He further added, “It will be exciting to see some startups build their businesses around the ONDC Network in the logistics, supply chain, or mobility space as part of the AWS Velocity Accelerator Program.”
Kapil Bharati, Chief Technology Officer and Executive Director, Delhivery, said, “Given the size and growth trajectory of the Indian economy, the logistics industry will witness exponential growth in the foreseeable future.
Kapil said the program will help build a logistic ecosystem to enable new entrepreneurs to convert their ideas into viable, functional business solutions.
The current landscape of the logistics market in India
According to Research and Markets report, The logistics market in India is estimated to be worth $435.43 billion in 2023 and is expected to reach $650.52 billion by 2028. This growth is estimated to be at a compound annual growth rate (CAGR) of 8.36%.
The growth is fueled by many technological and infrastructural developments, including e-way bills, fast-tag, e-invoicing, and GPS-based toll collection. It’s worth mentioning that the Indian logistics sector is heavily dependent on road transportation, which accounts for 66% of cargo in ton-kilometers. Rail transportation accounts for 31%, while shipping and air transportation account for 3% and 1%, respectively.
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