Borzo Expands B2B Operations Amid Intensifying Competition in Quick Commerce Market
India Remains Key Market for Borzo as It Shifts Focus to Enterprise Clients
Bengaluru: Borzo, a leading intracity delivery platform, has set its sights on maintaining its market lead in India while rebalancing its customer base to include more mid-sized and large enterprises. The company's new country head, Darryl Dias, aims to reduce its dependence on individual and small business clients, which currently account for 85% of its revenue in the country.
Dias, who joined Borzo as country manager after an eight-year stint as co-founder of electric vehicle startup Magenta Mobility, plans to achieve a balanced mix of 50-25-25 between individuals and small-to-medium businesses, mid-market clients, and enterprise customers. This pivot comes as the intracity logistics market in India shifts its focus from speed alone to unit economics and service reliability.
According to estimates by Redseer Strategy Consultants, the intracity logistics market in India was valued at $700 million in FY25 and is expected to grow to $2 billion by FY30. Borzo, which has been profitable in India for the past two years, attributes its success to a high repeat rate, a focus on maintaining a reliable rider base, and a technology stack that supports multi-order deliveries and API integrations for B2B clients.
| Company | Revenue Share from Individuals and SMEs | Revenue Share from Large Enterprises and B2B Segments |
|---|---|---|
| Borzo | 85% | 15% |
| Target | 50% | 25% |
Borzo operates in 23 cities, with Mumbai accounting for 80% of orders, Delhi-NCR 15%, and the remaining 20 cities just 5%. Dias plans to address this imbalance by replicating the company's model in Delhi-NCR and Bengaluru before expanding to other cities.
The company is also exploring the use of artificial intelligence (AI) in revenue-linked functions, such as delivery density heat maps to position riders in high-demand areas during peak hours. However, Dias emphasized that Borzo will avoid overusing AI and instead focus on areas with direct impact on revenues.
Borzo competes with Porter, Delhivery, Shadowfax, and Swiggy Genie in the intracity category. While the company is open to raising funds or pursuing acquisitions, discussions have not yet taken place at the board level. For now, the focus remains on building a local team and scaling profitably in a market where efficiency and reliability are becoming as important as speed.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Investor Takeaway
Borzo is shifting its focus towards mid-sized and large enterprises to reduce dependence on individual and small business customers.
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