Xpressbees co-founder Amitava Saha has challenged Delhivery’s claim that India’s logistics market can support only three major players. While Delhivery emphasizes a consolidated industry, Xpressbees is pivoting its business model toward B2B services to sustain growth amid rising competition and customer internalization.
The Indian logistics industry is witnessing a public disagreement between two major players over the future shape of the sector. Amitava Saha, co-founder of Xpressbees, recently rejected assertions made by Delhivery regarding the market's capacity. Delhivery had previously suggested that the Indian logistics landscape is best suited for only three major listed companies. Saha criticized this outlook, suggesting it reflects a desire for market dominance rather than an accurate assessment of India's long-term economic growth potential.
Strategic Shifts and Financial Context
The disagreement comes as both companies navigate a challenging environment marked by shifting e-commerce trends. Xpressbees has been working to reengineer its operations over the past 18 months, opting for a slower growth pace to prioritize profit margins. Financial data indicates that the company reported a loss of ₹370 crore for the fiscal year ending in March 2025, an increase from ₹200 crore in the previous year, while revenue remained steady at ₹2,874 crore. This financial performance reflects the pressures facing the sector as major e-commerce platforms increasingly build or internalize their own delivery networks.
One significant industry trend affecting third-party logistics providers like Xpressbees is the decision by large e-commerce platforms to handle shipments in-house. This strategy, adopted by players such as Meesho through its Valmo arm, reduces the volume available for external logistics firms. The sector has also seen consolidation, including Delhivery's acquisition of Ecom Express, which further altered the competitive landscape.
Diversification into B2B Services
To counter the impact of changing e-commerce demands, Xpressbees is reducing its reliance on traditional parcel delivery. The company has shifted its focus heavily toward business-to-business logistics. The B2B segment now contributes nearly 50 percent of its total business, a significant increase from 15-20 percent just a few years ago. Management plans to continue this expansion by adding between 500 and 700 new centers over the next three to six months. This would bring the company's total facility count to over 3,500 across the country.
While Delhivery continues to focus on its market position as a major listed entity—with its stock having experienced recent gains following its commentary on the three-player market—Xpressbees maintains that the logistics sector is growing at roughly 20 percent annually. As companies continue to build infrastructure, investors will likely track whether these expansion plans can effectively improve profit margins and successfully offset the loss of volume from major e-commerce clients. The ability of logistics firms to balance aggressive network growth with the rising costs of operations remains a key monitorable for the industry.