E-commerce-focused logistics company Xpdel plans to invest about US $ 50 million to expand its business in India, which covers delivery in 60% of India’s geographic area, the company said on Thursday.
Ashish Chadha, co-founder, and CEO of Xpdel APAC said on the sidelines of the announcement of the company’s services in India, a US-based logistics company to manage fulfillment centers in 20 domestic e-commerce markets. We plan to hire about 1,500 people in two years.
“We plan to set up fulfillment centers in 20 markets in India, which covers about 60% of the country’s geographic area. Over the next two years, we plan to have a team of about 1,500 people in our company. “Chada said.
He said the company will focus more on groceries and grocery delivery. Xpdel has already set up three fulfillment centers in Delhi NCR, Bhiwandi, Maharashtra and Bangalore.
The company has been operating in India since 2020 and currently has one client.
“We expect 4-5 customers to participate in the next 2 months. Over the next 2 years, we will set up 20 micro-fulfillment centers, have a footprint in the range of 10,000-75,000 square feet, and model. We are looking for a nanofulfillment center with an area of 2,000 to 5,000 square feet, “Chada said.
He added that the company has been profitable since it went live and that investment in India comes from internal accruals. As part of its global expansion, the company aims to launch in Europe and Canada by 2022.
Xpdel shared that India’s e-commerce sector is expected to grow from US $ 46.20 billion in 2020 to US $ 11.14 billion by 2025, meaning an annual growth of 19.24 percent.
According to the company, food products are one of the key pillars of growth, rising from US $ 1.9 billion in 2019 to US $ 18.2 billion in 2024, expected to grow at an annual compound interest growth rate (CAGR) of 57 percent.
“In the United States, we pick, pack, and ship, but in India, we have our own drivers for picking, packing, and shipping. Initially, we hired 400 pilots as pilots in Delhi and Mumbai. From there, we will expand our delivery service, “Chada said
