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Sugar Gets Sweeter with Delhivery's Nationwide B2B Boost

Logistic startup Delhivery gets a sweet deal from Sugar Cosmetics! Partnering for nationwide B2B deliveries. This means faster makeup shipments across India and a boost for Sugar's growth. Will this make them the #1 beauty brand? Stay tuned!

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Delhivery

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Promising to expedite makeup deliveries across India, Gurugram-based logistics startup Delhivery has announced a pan-India expansion of its partnership with Sugar Cosmetics. This collaboration signifies a significant shift from their existing focus on direct-to-consumer (D2C) services, venturing into the realm of business-to-business (B2B) operations for the beauty brand.

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Delhivery took to social media to celebrate the extended partnership.

In a tweet, it stated, "Thrilled to expand our collaboration with @trySUGAR, now covering end-to-end B2B operations across India! Already a trusted partner for their D2C express parcel, we're excited to take this next step together," reflecting the enthusiasm for this strategic alliance.

Meeting the Needs of a Booming Beauty Brand

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Amartya Guha, Sugar Cosmetics' Vice President of Supply Chain, highlighted the crucial role this partnership plays in their growth trajectory. "Sugar Cosmetics is experiencing phenomenal growth...We require a logistics partner who understands the demands of today's digital-first generation." He spoke about Delhivery's Express Part Truckload (PTL) services, which ensure "e-commerce speed" for B2B deliveries.

Furthermore, Guha lauded Delhivery One, the company's intuitive client dashboard, for providing "end-to-end visibility of consignments being shipped across India," granting Sugar Cosmetics a significant competitive edge.

Founded in 2015 by Vineeta Singh and Kaushik Mukherjee, Sugar Cosmetics has become a major force in the Indian beauty industry, swiftly climbing the ranks to become the country's third-largest color cosmetics brand. This strategic partnership with Delhivery is poised to further propel their nationwide expansion.

Delhivery's Winning Formula for B2B Logistics

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Varun Bakshi, Head of Delhivery's Express Part Truckload business, emphasized the company's distinct logistical prowess. "Our competitive edge stems from our unique mesh network design, integrated linehaul for both B2B and B2C segments, automated sorters, and swift turnaround times for tractor trailers," Bakshi explained. "Brands like Sugar Cosmetics, with their omnichannel strategy, benefit tremendously from our express PTL service. This ensures prompt stock replenishment and wider product availability, fueling their retail expansion across India."

Financial Highlights Reflect Continued Growth

Delhivery's Q4 financial report released this week indicates a promising trajectory, with the company significantly narrowing its losses. In the fourth quarter of FY24 (March 2024), their losses reduced to Rs 69 crore, marking a substantial improvement from Rs 159 crore in the corresponding quarter last year. Revenue from operations during Q4 FY24 witnessed a 12% year-on-year growth, reaching Rs 2,076 crore compared to Rs 1,860 crore in the previous year. Additionally, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q4 FY24 rose to Rs 46 crore, showcasing a significant improvement over the previous year's Rs 13 crore.

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For the entire financial year 2023-24, Delhivery's revenue growth reached 13%, while losses narrowed to Rs 249 crore from a staggering Rs 1,008 crore in FY23. The company's express parcel shipments grew by 11% to 740 million in FY24, with revenue from this segment increasing by 12% to Rs 5,077 crore. Q4 FY24 saw express parcel shipment volumes reach 176 million, with revenue reaching Rs 1,217 crore, reflecting a 3% year-on-year growth.

About Delhivery: From Humble Beginnings to Industry Leader

Founded in 2011 by a team of engineers, Delhivery has experienced phenomenal growth in the logistics sector. Starting with hyperlocal services in Gurugram, catering to florists, food businesses, and offline stores, they have now become a major player. Delhivery currently handles over 450 million transactions and boasted a remarkable annual growth rate of nearly 65% between 2015 and 2018. Today, nearly a quarter of all online product deliveries in India travel through Delhivery's network.

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Delhivery, during it's journey has been backed by prominent investors like New York-based Tiger Global Management, Nexus Venture Partners, and Times Internet (the digital arm of the Times of India Group). 

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