E-commerce growth could slow to 15% to 20% this year: Delhivery CEO

By

Isabelle Crossley

Published
May 23, 2023

Inflationary pressures among other factors could cause a slight slowdown in the Indian e-commerce industry with growth rates of between 15% and 20% predicted for this financial year, according to Delhivery CEO Sahil Barua. However, Barua is confident that this will benefit the logistics business. 

“I must mention when I said [there would be a slowdown] three quarters ago, it was generally met with widespread disbelief,” said Delhivery’s CEO Sahil Barua in a post-earnings call, ET Tech reported. “My own estimation hasn’t changed. I expect e-commerce to continue to grow between 15% and 20% year on year.”
 
In the 2023 financial year, Delhivery saw its revenue from operations increase by 5% to total Rs 7,225.3 crore. However, the business’ net loss decreased just slightly from Rs 1,011 in the 2022 financial year to Rs 1,007.8 crore in the 2023 financial year. 

“I do want to point out that a slowing market in which customers are focussed on profitability is an extreme advantage for Delhivery,” said Barua. “We are by far the most efficient player in the market and at a time when our customers are counting their costs they will shift more volume to Delhivery. And as I had mentioned, we do not face pricing pressures from our customers. Our express business continues to be profitable, so I view this as a positive and turbulence is always a good thing.”