Shiprocket, a logistics unicorn, is betting on fast deliveries from offline merchants to fuel its next level of growth. In August this year, the Gurugram-based company launched Shiprocket Quick, an on-demand local delivery solution, to enable offline merchants to meet consumer expectations for 2-hour or same-day deliveries within categories such as food, groceries, pet care, and electronics, among others.

“As consumer preferences continue to evolve, our MSME (micro, small and medium enterprises) must be fully equipped to adapt and seize new walk opportunities,” Saahil Goel, Managing Director and CEO of Shiprocket, told FE.

The company said the response to the service has been good so far and Shiprocket Quick currently serves over 2,000 active brands and merchants, including brands such as Kisan Konnect, Vijetha, Sardar Meat Shop, Vetic, Ferns & Petals and Bikanerwala.

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The company is also working to enable fast deliveries for Exclusively Branded Outlets (EBOs) in shopping malls to help them reach a wider audience.

The company aims to onboard around 100,000 EBOs and offline merchants by FY26. Additionally, it plans to continue expanding into new categories such as D2C (direct-to-consumer) brands and may also consider acquisitions to stimulate growth.

Goel said the company was a strong advocate for faster delivery time. “If you look at our entire warehousing network, it was created to be able to implement two-day delivery, same-day delivery and drone delivery for a lot of our customers. Today, same-day delivery has reached a significant number in the industry, so we are just making it even faster,” said Goel.

The company has a network of more than 150,000 active sellers and an annualized GMV (gross merchandise value) of $3 billion.

Speaking about the booming fast commerce space, Gautam Kapoor, COO at Shiprocket, said, “The idea behind our initiative is not to compete with 10-20 minute delivery. Expecting a small store, or even a large brand selling fashion etc., on high streets and shopping centers to have inventory to enable delivery within a few miles radius is not a good idea. no meaning to them. What customers and sellers expect today is to start the process within minutes for these categories. Then the time they reach depends on the distance.

The service is available in key cities including Delhi-NCR, Bengaluru, Mumbai, Chennai, Kerala, Hyderabad, Kolkata and Pune. The company has no plans to expand the service to new cities for now and wants to focus on new categories.

The startup estimates that offering faster delivery options correlates with a 10.5% increase in conversion rates and an 8.9% increase in repeat purchases.

The company has partnered with messaging services such as Porter, Ola, Borzo, Rapido and Shadowfax to enable small businesses to compete effectively with the biggest players in e-commerce and fast commerce. The startup will also continue to focus on its other emerging businesses such as Shiprocket Capital, Shiprocket Checkout, Shiprocket Cargo and cross-border commerce.

Shiprocket’s operating revenue jumped 20.8% to Rs 1,316 crore in FY24, compared to Rs 1,089 crore in the previous fiscal. However, losses widened to Rs 595 crore due to restructuring expenses.