Shipyaari Eyes To Grow 8x By Next Financial Year: Co-founder Nayan Ratandhayara
The logistics industry is expected to grow at a CAGR of around 10 per cent over the next five years. By investing in people, technology, and infrastructure, Shipyaari aims to capitalise on the opportunity
Launched on April 9, 2013, by Vishal Totla and Nayan Ratandhayara (Co-founder and CEO of Shipyaari), Shipyaari was their brainchild. Vishal and Nayan worked as Chartered Accountants at the time and had always aimed to start their own entrepreneurial venture. Soon after, Totla identified a wide service gap in the logistics sector. He saw an opportunity, a blue ocean, to translate their dreams into reality by leveraging technology to bridge this gap and create a platform that would help businesses of all sizes ship their products seamlessly. And thus, Shipyaari was launched, a logistics enabler, catering to the needs of small and medium-sized businesses in India.
Although both of them came from a non-technology background, they learned on the job and, along with a dependable team, created a robust platform that could handle large volumes of shipments and provide end-to-end visibility to the customers.
In 2015, Shipyaari launched its own hyperlocal service by the name eRunnerz. Although it was a revolutionary idea at the time, the service failed to gain traction and ultimately shut down. While the venture did not succeed, it paved the way for future innovations and ideas that have helped Shipyaari establish itself as a leading player in the logistics aggregation space.
Over the years, Shipyaari has emerged as a leading logistics enabler, with a strong network of partners and customers across India. The company has expanded its services, including warehousing, end-to-end fulfillment, international shipping, and hyperlocal services, and has introduced innovative solutions such as real-time tracking and automated shipping labels.
In an exclusive conversation with BW Businessworld, Ratandhayara discussed the journey of growing Shipyaari from scratch and its long-term goals. Here is an excerpt from our conversation with him:
What is Shipyaari’s USP?
Shipyaari differentiates itself from its competitors in the logistics sector through its technology-driven solutions, customised services, extensive network, and most importantly, their non-robotic NDR (Non-Delivery Report) management. Shipyaari's non-robotic NDR management has enabled their clients to reduce their RTOs (Return to Origin) up to 96 per cent and provide a high delivery ratio of even up to 99.6 per cent.
Unlike other logistics companies that may rely solely on technology to manage NDRs, Shipyaari has a team of professionals who investigate and resolve every NDR case. In addition to that, Shipyaari has a strong expansive network of over 20 courier partners, thus giving their clients a wide range of options to choose from.
How is technology disrupting the traditional logistics industry in India?
Technology has significantly disrupted the traditional logistics industry in India by improving efficiency, reducing costs, and enhancing visibility in the supply chain. Various technological advancements such as automation, IoT and sensors, artificial intelligence, digitalisation, and the rise of ecommerce have played a crucial role in this disruption. IoT devices and sensors enable real-time tracking of shipments, optimising routes and minimising risks. Automated warehouses and robotic sorting systems have decreased reliance on manual labor. AI-powered predictive analytics aids in demand forecasting, route optimisation, and cost reduction.
Digitalisation streamlines operations, reduces paperwork, and enhances transparency. The growth of ecommerce necessitates faster and more efficient logistics solutions. Overall, these technological advancements have made the logistics industry more efficient, customer-centric, and competitive in a rapidly evolving market.
What are the trends shaping the logistics sector in India and how are companies adapting to them?
The logistics sector in India is experiencing significant changes driven by various trends. Technology and automation are playing a crucial role as logistics companies adopt solutions like transportation and warehouse management systems, as well as predictive analytics, to enhance efficiency and reduce costs. Sustainability has become a key focus, with companies incorporating eco-friendly practices to minimise their environmental impact.
The growth of ecommerce is fuelling the demand for efficient logistics services, leading to expanded last-mile delivery capabilities and increased fulfilment centers. Warehousing solutions are also in high demand, prompting investments in infrastructure and the adoption of advanced technologies such as automation, robotics, and AI. To adapt, logistics firms are embracing technology, implementing sustainable practices, expanding services, and investing in infrastructure.
What are the traction details (users, reach and other achievements of the company)?
Shipyaari is a rapidly expanding company in India that offers SaaS-based supply chain solutions. We utilise technology and infrastructure to provide a comprehensive range of services for efficient order fulfillment. With five offices, a team of over 100 employees, and more than 25,000 clients, Shipyaari has established itself as a leader in the logistics industry.
Our extensive network covers over 28,000 pincodes, allow us to serve a wide range of customers. By prioritising customer satisfaction and embracing innovation, Shipyaari is well-positioned for future growth. We have gained the trust of notable companies such as Byjus, Portronics, Khadi, GOOQI, Allen Classes, and CURE fit. Shipyaari's success showcases the transformative potential of entrepreneurship and technology in traditional industries.
What are the key challenges faced by logistics companies in the Indian market?
Logistics companies in the Indian market face several key challenges. The pandemic has disrupted supply chains, leading to delays and increased costs. Additionally, there is a shortage of truck drivers and warehouse workers due to migration to rural areas. Other challenges include high fuel prices, inadequate last-mile connectivity, and the need for better technology integration.
To overcome these challenges, the Indian government has introduced initiatives such as the National Logistics Policy to address supply chain challenges and improve the efficiency of the logistics ecosystem.
How is Shipyaari adapting to meet the changing demands of this market?
Shipyaari is adapting to meet the changing demands of the market by expanding its service offerings to include hyperlocal delivery and warehousing services. We are also investing in new technology to enhance their services and improve the customer experience.
What has been the biggest learning so far?
The biggest learning for us so far has been the importance of customisation to customer satisfaction. We have realised that every customer has unique requirements when it comes to their logistics needs, and generic or standard logistics solutions may not always be sufficient. Customised logistics solutions that take into account each customer's specific requirements can improve efficiency, cost-effectiveness, and flexibility, resulting in a more positive experience for both the customer and their end consumers.
What are Shipyaari's growth and expansion plans for the future?
Shipyaari's growth and expansion plans for the future include increasing revenue by 8x in the next financial year. Furthermore, hiring a strong team of experts and CXOs to drive innovation, improve operational efficiency, and enhance customer satisfaction. Shipyaari plans to expand its reach across India and offer a more comprehensive logistics solution to its customers. We also aim to introduce warehousing and international shipping services to provide more comprehensive logistics solutions domestically and globally. By investing in people, technology, and infrastructure, Shipyaari is well-equipped to achieve its growth targets.
What is the market size and opportunity?
The market size and opportunity in the Indian logistics industry were approximately USD 215 billion as of September 2021. The industry is expected to grow at a CAGR of around 10 per cent over the next five years. Factors such as a growing population, increased consumer demand, internet penetration, availability of 5G services, and government initiatives have created opportunities for growth. The pandemic has also accelerated the growth of ecommerce in the country. India's strategic location and participation in regional trade agreements make it an attractive destination for businesses. The logistics industry in India offers significant growth prospects and a favorable business environment.
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