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The express logistics boom: Speed, scale & Next-gen delivery

In this interview, Satish Lakkaraju, CEO of Nexgen Logistics and Board Member at ACFI, discusses how Tier 2 and Tier 3 cities are emerging as game changers in India’s logistics sector.
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The Indian express deliveries market has been expanding rapidly. How do you view its current state?

The Indian express logistics sector has been on a remarkable growth trajectory. In 2018, it was valued at around ₹22,000 crore and by 2023, it had crossed ₹32,000 crore. This is no surprise, given how e-commerce, digital payments, and technology adoption have transformed the landscape. The momentum is far from over. We expect the sector to continue growing at a CAGR of 19–23 per cent through FY2030, with Tier 2 and Tier 3 cities emerging as strong growth engines. While last-mile domestic logistics continues to evolve, we see cross-border express deliveries becoming an equally powerful driver, particularly as global e-commerce flows expand and the Indian diaspora seeks reliable shipping solutions from home.

What factors have contributed to this strong post-Covid growth?

The pandemic fundamentally altered consumer behaviour. Online shopping, which was once a convenience, has now become a long-term habit. The ease of digital transactions through UPI and mobile wallets has further accelerated this shift. In addition, cross-border demand has taken off in ways we couldn’t have imagined a decade ago. Platforms like Garudavega and GarudaBazaar have seen an influx of demand from NRIs and overseas buyers looking for secure and affordable deliveries from India. It’s this combination of digital adoption, behavioral shifts, and diaspora demand that continues to sustain growth.

How do you see different segments contributing to the market’s growth?

Domestic B2C e-commerce remains the dominant contributor, but we are seeing outbound cross border shipments grow rapidly. SMEs and individual exporters are increasingly looking at global markets, and the diaspora demand is consistently strong—whether it’s for food items, electronics, or cultural products. Interestingly, religious and cultural customs have also become a key driver of C2C and B2C logistics. On the policy side, initiatives such as the Foreign Trade Policy 2023, new PLI schemes, and FTAs with countries like the UAE and UK are giving exporters greater confidence. Together, these factors are reshaping the balance between domestic and cross-border express deliveries.

Tier 2 and Tier 3 cities are increasingly being mentioned. What role are they playing?

They are game changers. Earlier, international shipments were largely concentrated in metros. Today, small businesses in places like Guntur, Vizag, Coimbatore, Guwahati, Imphal, Shillong, and Bhubaneswar are directly exporting to global markets such as the US, UK, and UAE. This is nothing short of a democratization of international trade. It means that global connectivity is no longer the privilege of large cities—it is spreading deep into the heart of India.

Technology clearly underpins a lot of this growth. How has Garudavega leveraged it?

Technology has been central to scaling our operations. We’ve built real-time tracking systems that work across multiple geographies, automated customs documentation to smoothen cross-border processing, and dynamic pricing algorithms that balance cost and performance across shipping zones. Our mobile app has become a critical tool for customers—it allows them to schedule, track, and manage shipments conveniently.

Quick commerce has been transforming customer expectations. How is this trend influencing you?

Even though Garudavega doesn’t operate directly in the domestic Q-commerce space, the impact is undeniable. Customers now expect speed, transparency, and real-time visibility everywhere. In response, we’ve expanded our global hubs to support 3–5 day deliveries to key destinations like the US, UK, UAE, and Australia. We’ve also scaled pickup-ondemand services in Tier 2 and Tier 3 cities, covering an ever-expanding list of zip codes. Abroad, we partner with local last-mile players to ensure faster deliveries at the customer’s doorstep.

What are the biggest operational challenges in crossborder express logistics?

There are several. International air cargo capacity from Tier 2 cities is still limited, and express gateways are concentrated in hubs like Delhi and Bengaluru. Customs clearance delays at destination countries, changing tariffs, and varying regulations also create hurdles. Service quality can differ across last-mile partners, depending on geography and even geopolitics. Documentation for personal shipments is another ongoing challenge, as these are not always streamlined under conventional trade systems. To overcome these, we’ve established centralized hubs in cities such as Bengaluru, Chennai, Hyderabad, Mumbai, Cochin, and Delhi where we consolidate, clear, and dispatch cargo efficiently.

How competitive is the express delivery landscape today?

The competition is intense. Domestically, Q-commerce and e-commerce-driven models are reshaping customer expectations. Internationally, the market is fragmented, with many aggregators and integrators entering the fray. What differentiates Garudavega is our regional trust and personalized service, especially for the Indian diaspora. Customers choose us because of our speed, transparency, and reliability, but also because we’ve built consistency and trust over the years.

What must legacy courier companies do to stay relevant? They need to modernize. Realtime shipment visibility is now non-negotiable, and regulatory expertise in cross-border logistics is critical. Sustainability too cannot be ignored. Companies must invest in EV fleets, eco-friendly packaging, and carbon tracking. Globally, best practices like urban consolidation hubs and automated sorting systems are raising efficiency levels.

Speaking of sustainability, what steps are you taking?

Sustainability is at the heart of our growth strategy. We are optimizing routes to reduce fuel consumption, partnering with EV-first fleets for pickups in India, and actively exploring carbon offset programs for international air freight. Overseas customers, in particular, are increasingly conscious of environmental impact, so these initiatives aren’t just about compliance—they align with customer expectations as well.

What policy changes would you like to see to support crossborder express growth?

There are a few critical gaps. Clearance procedures for C2C and personal effects need simplification. India’s Foreign Trade Policy should provide clearer guidelines for courier-mode imports and exports. Return shipments also need faster processes, as current rules vary widely by weight and value. Finally, there should be incentives for creating regional cargo hubs and bonded warehousing near Tier 2 cities.

What is Garudavega’s vision for expansion?

We are already operating from over 440 locations across India and aim to cross 1,000 locations within the next four years. The vision is simple: to give every Indian, regardless of geography, equal access to reliable cross-border logistics. To do this, we are adopting a hub-and-spoke model that ensures quality even as we scale. We’re expanding through franchise partnerships, regional alliances, and smart technology integrations.

Finally, can you give us an overview of Garudavega’s position in the market?

Garudavega, under NexGen Logistics Pvt. Ltd., is now a premier brand in cross-border courier services for the Indian diaspora. We deliver parcels, cargo, and documents to key markets including the US, UK, Canada, UAE, and Australia. Beyond this, NexGen Logistics also provides freight forwarding, customs brokerage, and integrated logistics solutions.

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