Borzo to intensify its presence in South India to grow its biz

Presently South India accounts for 25% of the company’s enterprise deliveries and 20% of the small and medium business segment.

Having made inroads in Mumbai and Delhi the Russian intra-city delivery service Borzo, in now betting big on pushing its services in South India and aspires to grow 10 fold by the end of the next calendar year, informed the company’s chief executive, Rami Saab.

Presently South India accounts for 25 per cent of the company’s enterprise deliveries and 20 per cent of the small and medium business segment. “We expect South India to contribute 40 per cent to our delivery growth,” Saab said. While Borzo is already present in Chennai, Hyderabad and Bengaluru, it is not looking at expansion into other cities but is instead focusing on consolidating the markets it is already present in. As of date, Borzo clocks around 2.5 million monthly deliveries across the country. 

The company is also betting big on the enterprise segment, which it entered in late 2021, on the back of projected growth in India’s e-commerce, grocery delivery and retail sectors. While most delivery-focused enterprises today operate their own fleets, the expected scaling in operations may prompt them to outsource these services. 

“The enterprise sector right now is booming. You have players like Meesho, Zomato and Swiggy, and even grocery delivery players like Blinkit and Big Basket. They are expanding very aggressively and are in turn driving our expansion very effectively. They are getting into stage two where they are not doing deliveries by themselves, but going more and more to third parties. Stage three would be them looking at professional companies to consolidate a little bit,” Saab said. 

To facilitate this growth and bring synergies between the enterprise and SMB arms, Borzo is looking to expand its fleet of delivery partners from the current 50,000 to 90,000. The company is also looking to raise a fresh round of capital at an undisclosed valuation sometime next year. Post that, it will either expand in other international markets following its playbook in India, or continue focusing on the country based on its growth metrics. 

“We are focusing on consolidation of current markets rather than expanding into new markets. Out of those, India will probably make up for 90 per cent of the growth in the next year,” Saab said.