In accordance with a report released on Tuesday, India's e-commerce logistics industry saw total shipments reach 4 billion in FY23, driven by new categories, direct-to-consumer (D2C) brands, and continued growth in smaller cities.

According to the latest Redseer Strategy Consultants report, India's e-commerce logistics space is on track to comfortably exceed 10 billion shipments by FY28 at a minimum compound annual growth rate (CAGR) of 20%.

Despite increased competition, Delhivery remains the dominant player in the e-logistics space by a wide margin.

"Despite funding headwinds in the e-commerce/internet sectors, there are multiple pockets of high growth and high yield opportunities available for e-logistics players," said Mrigank Gutgutia, Partner, Redseer Strategy Consultants.

D2C brands across channels are expected to increase overall GMV by 35% in the coming years, with brand.com accounting for a significant portion of this growth.

By CY27, D2C brands are expected to generate $33 billion in GMV across all channels.

According to the report, logistics players with relevant and customised offerings for D2C brands are well-positioned to capture market share in this high growth segment and have a stronger yield profile going forward.

"Players who build robust capabilities and offerings to effectively serve this demand will fundamentally be more resilient in these challenging times and will be better positioned for long-term market share and yield leadership," Gutgutia said.