From every smartphone to flowers delivered to your doorstep, there is a courier service business behind it. The same business that brings a smile to the receiver’s face also brings profits to interested entrepreneurs. The market itself stands at over ₹4,200 crore and is expected to reach ₹6,600 crore by 2030.
With growing online shopping, the courier business has become one of the most lucrative business ideas in India. In this blog, we’ll understand how to start a courier service business in India, along with its types, registration process and risks.
Traditionally, the courier business was limited to catering to letters, documents, and small parcels between cities. It has now grown significantly in the last few years. The emergence of e-commerce, quick commerce, and home delivery has given rise to a huge demand for quick and efficient deliveries.
Many businesses now rely on courier service providers to send their products, parcels, and documents on a regular basis. The industry itself is expected to reach ₹6,600 crore by 2030, as per the data of Mordor Intelligence. Whether it is clothing or medicines, everything nowadays requires a delivery system.
This is why there is a need for a delivery business in India that not just caters to individuals but businesses, as well. This demand also presents itself as an opportunity to start a lucrative courier startup in India that is easy to grow and scale.
Here are the different types of courier service businesses in India that cater to different segments of products and parcels:
1. Local Courier Services
These are based in a local town or city. They provide next-day or same-day parcel delivery for local small businesses, individuals, and local shops. It is suitable for someone who is new to the business as it involves less investment and fewer vehicles.
2. Regional Courier Services
These services operate in several cities of a region or a state. They also handle intercity parcels, documents, and commodities. This model is ideal for individuals thinking of expanding operations outside city limits once they’ve built a stable and sustainable local business.
3. E-Commerce Delivery Services
This is one of the fastest-growing niches in India. Online businesses depend a lot on courier partners who can get their orders delivered safely and quickly. It can be extremely lucrative to start an e-commerce-focused logistics startup in the courier industry if you can provide quick and safe deliveries. Most online retailers prefer working with small courier companies with flexible pick-up schedules and affordable rates.
4. Express and Same-Day Delivery Services
This model offers expedited, time-constrained delivery, usually within 24 hours of local or city-to-city delivery. E-commerce retailers, pharmaceutical firms and suppliers of perishable goods very seek after it.
You can also start a courier franchise in India that allows you to provide branded services with the use of national or international networks. Choosing the right type of service is important as it will also affect other aspects of your business, like investment, vehicle sizes, manpower, and marketing.
Here are the important licenses and registrations needed to start a courier company:
The investment you’ll have to make will vary based on the size of your courier service and what you want to achieve with your business. However, here are some general estimates:
Once you’ve set up your courier business, here are the marketing strategies you can employ to grow your business:
Here are the key risks of starting a delivery business in India you must know and overcome:
Starting a courier business in India is one of the best ways to tap into the growing online shopping market. The growing demand not only promises business growth but also better profits. The key benefit is that you can start the delivery business with minimal investment. If you are struggling to grow the business due to a lack of funds, you can apply for a business loan with DMI Finance and get up to ₹25 lakh.
1. Can I start a courier service with one delivery vehicle?
Yes, most small courier startup companies in India start from one vehicle and then gradually add more fleets as the business grows. However, it is advisable to have at least 2-3 vehicles to ensure seamless deliveries.
2. Do I need special insurance for courier vehicles?
Yes, you will need commercial vehicle insurance since you will be carrying goods on a regular basis.
3. How do I collaborate with e-Commerce websites for delivery?
You can join aggregator platforms such as Shiprocket, NimbusPost, or Pickrr that match courier services with online shopping portals.
4. Do I need a warehouse for a local courier company?
No, you can have a small office or home setup until parcel volumes increase for local delivery.
5. How to deal with lost or damaged packages?
Be transparent with policies and related claims, and get packages insured so that they cover both you and the customer.
6. How do I differentiate my delivery business?
Provide real-time tracking, on-time deliveries, and prompt customer support to build trust and stand out in the competitive market.
7. Are there any schemes offered by the government available for logistics startups?
Yes, there are MSME and digital logistics support programs that provide funding and training for the owners of logistics startups.
8. Can I run a courier franchise part-time?
Yes, you can run a courier franchise part-time, but you’ll need reliable staff to manage operations during working hours.
9. How do courier companies calculate delivery charges?
Charges are usually based on parcel weight, distance, and delivery speed (same-day or next-day).
10. What software tools are useful for managing deliveries?
Use delivery management apps for route optimisation, proof of delivery, and order tracking to simplify operations.
Disclaimer: The business ideas shared in this blog are based on research and trends. DMI Finance does not recommend or guarantee it. Starting a business involves risk; please use your own judgment and discretion. DMI Finance is not liable for any loss or outcome resulting from actions taken based on this content.
