Transforming Logistics With Digital Inclusivity And Smart Tech: Ratnesh Verma

Amidst the exponential rise of e-commerce and the digital revolution, an encounter with a paradox within the country’s last-mile logistics management sparked an entrepreneurial spirit inside Ratnesh Verma, Founder and CEO, Pidge. Armed with a deep understanding of business literature and a global perspective, Ratnesh questioned the prevailing norms in the logistics sector. Despite the evident surge in e-commerce, he observed a shift towards businesses preferring to employ their own dedicated riders, even as emerging delivery companies grappled with financial challenges while trying to meet escalating demand. This intriguing contradiction led Ratnesh to explore the untapped potential of a fragmented logistics space in India.

Uncovering the challenges and contradictions in the industry, Ratnesh envisioned a logistics system that embraced a hybrid approach, promoting collaboration among all stakeholders in the ecosystem. Join us as Ratnesh Verma shares his insights on navigating the complexities of the logistics sector, his vision for Pidge, and how the platform aims to reshape last-mile logistics in India.

How does Pidge’s low-code and self-serve logistics SaaS solution specifically address the pain points experienced by small and medium businesses (SMBs) in the logistics sector?

Verma: The Indian ecosystem is bustling with entrepreneurs and continues to be the largest startup ecosystem after the US and China. As per MSME India, more than 60 million MSMEs are registered and contributing to the economy. However, often, these enterprises encounter several pain points that hinder their operational efficiency. These challenges include:

Limited tech adoption: SMEs rely on managing their order manually from multiple order channels which burns their efficiency. One of our clients, Urvann, a pioneering hyper local marketplace for plants and gardening products, handled its entire order management manually on spreadsheets, which was hindering its accuracy level and overall growth trajectory.

No real-time visibility of orders: Lack of real-time visibility of the supply chain leads to inefficiencies. The lack of real-time tracking of orders and communication with customers often dilutes the overall brand experience.

When we entered the logistics industry, we wanted to solve these challenges with an accessible and easy-to-use technology, which would add to the growth of businesses and not act as an added liability. Built on the pillars of functional design, simplified technology, and smart innovation, we created a low-code DIY logistic technology. This provides:

A Complete Self-Serve Platform: Our users do not have to depend on IT support or customizations. They can independently sign up, set up, and configure the logistics solution.

A Simplified User Interface: Businesses can manage their last-mile delivery in just 10 minutes with our self-on boarding platform. By simply assigning the order to their own riders or 3rd party riders, they can schedule deliveries with dynamic slot bookings with single or multiple pickups, have optimized route planning, and track the entire delivery in real time to get a better customer experience.

Easy Configurations And Integrations: With quick API integrations, our platform can integrate with all demand channels, whether online websites, 3rd party aggregators/order management systems, or offline deliveries. Unlike traditional logistic platforms, we do not require complex product developments or setup expenses to get the client started with our platform.

Automation And AI Intelligence: Our low-code platform allows customers to automate repetitive tasks; for example, Pidge’s unique Multiple Optimization Route Recommendation Engine (MORRE) enables businesses ‘to do more with less’, ensuring efficiency in every delivery. By factoring in elements such as real-time traffic and weather conditions, our product gets the best delivery route.

In the context of the unorganized logistics sector, how does Pidge's technology empower third-party logistics providers, aggregators, and MSMEs to operate more efficiently and collaboratively?

Verma: Pidge aims to build a strong Digital Bharat by building digital inclusiveness. While making the Pidge logistic platform, we focused on two things: firstly, encouraging greater tech adoption among SMEs while effectively managing their logistics operations, and secondly, the need to digitize the huge unorganized logistics network and provide businesses with access to more delivery partners to ensure that no demand goes unfulfilled.

We created India’s first interoperable delivery network that brings together various participants, including 3PL partners, regional and local courier vendors, and riders from our partner network, fostering collaboration and facilitating growth for businesses and network providers. The platform will focus on:

Making Technology Accessible To All: The unorganized logistics network and courier partners often rely on outdated systems which makes them less competitive, by providing them with technology and integrating them into our network, we empower them with better access to demand coming from various businesses and improve their logistics operations, such as rider tracking and real-time customer updates.

Providing An End-To-End Solution: Our platform covers various aspects, including managing multiple demand channels to inventory management and post-delivery processes. This comprehensive approach ensures better customer loyalty and an overall enhanced delivery experience.

Offering Unrestricted Integrations: We offer our customers the power to create their own delivery network. Using our drag-and-drop model, they can align their fulfillment processes with their own fleet, partner with 3PL providers, or tap into the unorganized fulfillment options available on our network. This approach eliminates the chance of leaving any demand unfulfilled and provides more choices, leading to increased revenue for our customers.

With the recent USD 3 million funding round, how does Pidge plan to scale up its logistics SaaS offering, and what areas of innovation or expansion are in focus?

Verma: In the first quarter of this year, we successfully secured an impressive USD 3 million in a funding round, with Mountain Partners leading the round. At Pidge, we've undergone a strategic transformation, shifting from a traditional delivery company to a dynamic technology-focused entity. This evolution positions us to offer accessible and user-friendly technology solutions, keeping pace with the changing demands of market.

A substantial portion of our recently secured funds has been strategically allocated to scale up our logistics Software as a Service (SaaS) offering. We're investing in enhancing our technological infrastructure, improving our service capabilities, and ensuring a seamless and efficient experience for our users.

To support and drive our ambitious growth plans, we've strengthened and expanded key leadership positions in areas such as marketing, partnerships, and alliances. This strategic move ensures that we have the right expertise to navigate and capitalize on the evolving market dynamics.

In the evolving landscape of global logistics post-pandemic, what role does Pidge see for its AI-driven route optimization, advanced geo-coding capabilities, and real-time tracking features?

Verma: After the post-pandemic period, we have witnessed a surge in e-commerce, with an increasing number of individuals becoming comfortable with digital commerce and expecting instant deliveries. Consequently, there is a heightened demand for last-mile logistics partners and smart technology that can maximize efficiency for businesses.

Pidge recognizes the pivotal role that AI and advanced technology can play in making deliveries more accurate, with better delivery success, and transforming them into a competitive advantage for the brand, rather than just being a cost center. To support this, Pidge's flagship AI algorithm, Smart Allocation, surpasses traditional routing solutions. It learns from delivery data over time, continuously optimizing future allocation decisions.

Pidge's comprehensive approach provides an end-to-end solution for businesses seeking to optimize their delivery processes holistically. The integration of AI-driven technologies leads to substantial cost savings, improved customer satisfaction, and enhanced operational efficiency.

Pidge recognizes the critical role of MSMEs in building a resilient India. Can you share specific strategies or features within the platform that cater to the unique needs and challenges faced by MSMEs in the logistics space?

Verma: To spur the MSME industry, Pidge wants to allocate power in the hands of brands through its seamless SaaS platform that can onboard any delivery business and allow them to launch their operations with full delivery capacity. By leveraging Pidge’s platforms, brands can easily optimize their delivery options, eliminate the problem of unfulfilled demands, minimize delivery costs, and enhance customer experience.

Pidge’s platform is able to seamlessly integrate with both major and regional supply networks, providing AI-driven route optimization, advanced geocoding capabilities, real-time tracking, customizable alerts, and other communication to ensure reliable and on-time deliveries. Pidge’s interoperable SME platform allows businesses the freedom to move freely between self-fulfillment and 3PL partners.

MSMEs can vastly improve their revenue through Pidge’s low-code, unified dashboard for multi-channel demand generation, combined with game-changing offerings for subscription-led businesses. Advanced analytics, AI-based proprietary technology, and custom algorithms will make an unprecedented combination of speed and reach to enable faster commerce.

How does Pidge differentiate itself from other players in the logistics tech sector?

Verma: What sets us apart is our pioneering 'Networks' proposition that enables anyone with the ability to ‘do’ deliveries to build their own hybrid delivery networks, blending their in-house riders with our extensive pool of partners, dramatically expanding their delivery reach, an exclusive feature unmatched by any competitor.

Our smart allocation feature, industry-first alert automation functionality, coupled with our trademarked AI-driven route recommendation tech known as MORRE, takes route planning and delivery management to unprecedented levels of efficiency. Businesses can auto-allocate routes for deliveries, effortlessly compare routes for optimal choices, and run simulations to fine-tune their operations, resulting in cost savings and enhanced customer satisfaction. Ours is an end-to-end solution that empowers businesses to optimize their delivery processes holistically, leading to substantial cost savings, enhanced customer satisfaction, and improved operational efficiency.

What opportunities do you see in the logistics sector for budding entrepreneurs, and based on your experience with Pidge, what advice would you offer to those looking to enter or innovate within this space?

Verma: Navigating the logistics industry for nearly five years, I've witnessed the constant evolution of this dynamic sector, presenting budding entrepreneurs with a myriad of opportunities. The Indian logistics landscape is currently teetering on the edge of disruption, necessitating improved infrastructure, enhanced connectivity, and streamlined processes for overall cost-effectiveness.

For those aspiring to venture into or innovate within the logistics space, my advice extends beyond merely addressing immediate challenges; it encompasses a broader vision of transforming the industry into a more organized, tech-savvy, and efficient ecosystem that propels economic growth.

Challenge the Status Quo: Take a bold stance and challenge the traditional ways of doing things in the logistics sector. Innovation often starts by questioning the status quo.

Dive into Design Thinking: Don the design thinking hat. Before rushing to find solutions, delve deep into the core of the problems. Understanding the intricacies of the challenges will provide a solid foundation for effective solutions.

Be Agile in Problem-Solving: The logistics landscape is ever-changing. As you unravel problems, be agile in adapting to new information and evolving your solutions. Flexibility is key in this dynamic environment.

Collaborate for Success: Collaboration is a powerful tool in the logistics sector. Explore partnerships with other businesses, tech providers, or even government bodies to create a collaborative ecosystem that benefits all stakeholders.