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Beyond the Funding Winter: 2023 for Start-ups in the Indian Supply Chain Management & Logistics Sector
Beyond the Funding Winter: 2023 for Start-ups in the Indian Supply Chain Management & Logistics Sector

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As 2023 turned out to be a year marked by challenges and transformations for the Indian tech start-up ecosystem, the funding winter cast its shadow over all key industry sectors, with each sector grappling with its unique set of circumstances. Amidst this, the Supply Chain Management & Logistics (SCM & Logistics) sector emerged stronger than many others. Although the sector could not shield itself from the decline in funding, yet, it managed to increase its share in the overall funding that flowed into the ecosystem.

Source: nasscom-Zinnov Weathering The Challenges: The Indian Tech Start-Up Landscape Report 2023

On zooming into the funding dynamics, a noteworthy trend emerged – mature start-ups within the SCM & Logistics sector were the focal point of investments as these businesses accounted for 61% of the funding raised. These were ventures that had already navigated the challenges of scaling, garnering investor trust for their stability and proven track record.

Going forward, the tech start-ups in this sector are expected to continue driving its growth. These businesses aren’t merely adopting technology but are actively reshaping the traditional value chain. From production planning and procurement to delivery of goods and reverse logistics, technology start-ups are injecting agility and intelligence into the supply chain, thus addressing longstanding challenges in the sector.

A diagram of a company's value chain

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Source: nasscom-Zinnov Weathering The Challenges: The Indian Tech Start-Up Landscape Report 2023

The government is also playing a crucial role in the sector’s growth by recognizing the strategic importance of a robust supply chain and launching initiatives to serve as growth catalysts. For instance, the Gati Shakti National Master Plan aims to enhance logistics efficiency in India by leveraging advanced technologies and relevant IT tools to overcome project challenges. National Logistics Policy has introduced platforms such as Unified Logistics Interface Platform that provides opportunities to private sector to develop use cases. ONDC-led e-commerce growth is also expected to be a key contributor to the growth of this sector going forward.

As we move into 2024, resilience of the sector will continue to be driven by innovation and its very nature itself. As the sector constitutes the backbone of the Indian economy, governments will continue to offer support for its growth, thereby offering opportunities to the start-ups operating within it.


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Dhiraj Sharma
Principal Analyst

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