How Warehouse Now is digitizing the warehousing industry in India

In 2020, the Indian warehousing market was estimated to be worth Rs 1,050 billion. Between 2021 and 2025, it is predicted to increase at a compound annual growth rate (CAGR) of 14.86%, reaching a value of Rs 2,028.86 Bn. In India, the warehousing sector is likely to expand in the next years.

The country has seen a rapid surge in the pharmaceutical, e-commerce, and manufacturing sectors are driving growth in the Indian warehousing market. The market’s rapid expansion can also be ascribed to government policy assistance and increased institutional investment. Other variables, such as technical improvements like warehousing automation and robotic mechanization, are projected to transform the market in the near future.

The use of the warehouse system has grown significantly in recent years. From 2019 to 2020, warehousing and cold storage space occupations increased by 77% in India.

Listed are the trends that the Indian logistics and supply chain follows:

Emphasis on Cold Supply Chain:

According to the ‘Indian Cold Chain Industry Outlook 2022,’ the Indian cold supply chain sector is expected to grow at a CAGR of 17-18 percent until 2022, driven primarily by the pharma sector, particularly the vaccine supply chain in early 2021, followed by requirements from seafood, meat, and similar industries.

While the introduction of a government-led COVID immunisation programme will drive growth, the growing e-commerce market for FMCG, dairy, meat, and fish will also significantly help prope the sector, given the ongoing virus threat. According to IMARC services, healthcare products currently account for 3.6 percent of the overall Indian cold chain market, which is expected to grow by around 6 percent by the end of 2021.

Increase in 3PL and 4PL providers as manufacturing expands:

Agility, speed, and mobility will be the key goals for a robust supply chain network, and the preference for 3 and 4PL service providers will be set the tone for development.

While manufacturing was an early adopter of 3PL and 4PL service providers, other industries are likely to benefit from outsourcing their supply chain management to experts in the near future, allowing them to focus on rebuilding and strengthening their core business, especially in the aftermath of the pandemic.

Furthermore, the evolution of these service providers into key partners, offering expert, end-to-end solutions ranging from documentation, tracking, warehousing, legal compliance, and even kitting in some cases at competitive rates, has made them a profitable choice for most businesses working to recover from the financial crisis.

The Indian 3PL market is expected to grow at a rate of more than 11.5 percent between 2020 and 2025, with a strong emphasis on value-driven services that improve customer satisfaction and delight.

Affordability of road transport:

The GoI intends to build a massive road network in the future, with a focus on developing infrastructure such as dedicated freight corridors, container freight stations, and so on. India must develop an intermodal and multimodal transportation system to reduce transportation and storage costs, which are currently relatively high.

Unfortunately, the current state of road infrastructure limits the maximum distance that heavy transport vehicles can travel on highways. To address such challenges, the Government of India has decided to reduce the current logistics cost of India’s GDP over the next two years with the assistance of the Ministries of Railways, Transport, Shipping, and Aviation.

Sustainable practices will be implemented:

Green logistics will be a critical component of supply chain evolution. Sustainable practises are now the norm for international logistics and supply chain players, as well as businesses. Green supply chains are viewed as responsible and, in some cases, mandatory criteria when selecting a logistics partner.

The influx of international manufacturing and e-commerce players is expected to boost the Indian green Logistics and supply chain, thanks to encouraging business opportunities for those who practise sustainable practises. Aside from protecting the environment and benefiting society as a whole, sustainable practises are also becoming more cost-effective, thanks to the sector’s rapid technological evolution, and are playing an important role in gaining consumer loyalty and endorsement for the socially and environmentally responsible.

Currently, storage in India is centred primarily in Tier 1 cities such as Bengaluru, Chennai, Kolkata, Mumbai, Delhi-NCR, Ahmedabad, Pune, and Hyderabad. Some positive catalysts for the warehousing and the fulfilment industry are that there is 100% FDI in B2B e-commerce and marketplace models. Even in Tier 3 and Tier 4 cities, there is a high level of digital penetration in this age.

Also, Omnichannel capabilities are being adopted by traditional retailers. It is seen that due to covid-induced lockdowns, e-commerce is becoming a more popular buying channel for almost everyone.

Industry breakdown:

  • In India warehousing and logistics is expected to grow by 15% CAGR by 2025.
  • $360 billion has been already spent in the industry in India.
  • It is moving towards becoming the third largest eCommerce industry in India.
  • The industry is going to witness a 24% CAGR growth in the market of warehouse management systems till 2024.
  • Job prospects worth $350 million are to be added by the year 2025.

Some positive triggers of the industry are as follows:

It has 100% FDI in B2B e-commerce and marketplace models. Even in Tier 3 and Tier 4 cities, there is a high level of digital penetration. Retailers are enhancing their Omnichannel capabilities. Because of the covid-induced lockdown, e-commerce is becoming a more popular shopping channel.


Warehouse Now offers flexible and on-demand warehousing space, pay-per-use logistics and manpower solutions customised packing and infrastructure, fulfilment, and last-mile delivery services across the country. It collaborates with vendors across the supply chain industry to provide best-in-class services to its clients across industries. It is solving the problem for D2C brands, SME’s, and large corporates by providing a tech platform for both demand and supply on the supply chain function.

Legal name: Optimizing Resources Private Limited

Business model:B2B

Founded: 2019

Founder: Tarun Saraf

What is Warehouse Now

Warehousing and its associated activities are part of a sophisticated sector known as logistics management. Procurement, inventory management, and distribution are all aspects of logistics. It is included in the supply chain, which also encompasses product development, marketing, sales, and other product-related disciplines.

However, the lack of viable lands, expensive land purchase prices, and a lack of adequate warehouse infrastructure in the country are some known challenges that are limiting market growth and expansion.

The warehousing and fulfilment sector is currently inefficient and fraught with many problems faced by both the clients and the suppliers.

Challenges faced by the clients are that there is no clarity and transparency around the pricing. There is no flexibility in the supply chain. Idle assets/resources are used, and no long-term commitments are entered into.

The Inception

Founded in 2019 by Tarun Saraf, Bengaluru-based Warehouse Now claims to be the first digital platform in India working in the warehousing space and other supply chain services by leveraging technology and solving all these problems.

Before launching Warehouse Now, Tarun had worked in many other logistics firm, and by the time he identified all the defects in the system, he noticed that there were not enough manpower when needed during sales spike and there were delays in order processing and way too many locks in’s.

When he tried to find someone that will help him fix all the gaps he found no one. So he came up with his own venture to mend the broken system.

The startup says it has warehouses ranging in sizes from 100 to lacs of square feet. It provides a flexible workforce and completes fulfillments within stipulated timetables. They also provide warehousing, fulfilment, and last-mile services in any city within a day and for as little as a week.

With its tech-enabled solutions, Warehouse offers a Vendor Management system (VMS), Warehouse Management System (WMS), Pay’d a platform made for timely salary payments for the employees, a Warehouse listing app for the landlords, and a warehouse discovery app for its clients.

A platform for landlords to list their warehouses:

Through its listing app, Warehouse Now allows landlords to list their property. The WH Now algorithm then matches potential clients to the warehouses listed on the platform. The end-to-end transaction steps from lease documentation, and compliance checks to money transfers, and everything that comes in between are taken care of by the WH Now team.

How does it benefit the customers.

The warehouse discovery app lets the customer share details and requirements of what they are looking for, it then floats the RFQ on the vendor portal of the platform. Vendors then need to bid digitally on the RFQ and then WH Now shares the final proposal with the customer.

Future plans

WH Now wants to make its services available across 500+ cities and towns in the country. The startup also plans to expand its services in other countries as well.

At Warehouse Now, we are building a largest digital platform for supply chain needs of businesses. Warehouse Now is the Amazon for supply chain needs of any business. We have in the last one year shipped more than 100 Mn products from our managed warehouses.

said Tarun Saraf

“We are solving supply chain problems of 20+ industries from a Pharma business to an FMCG business. Our clients include Fortune 500 Companies and D2C brands which are using our shared/managed warehousing to reduce their logistics cost and deliver to their customers in less than 4 hours,” Tarun adds.

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