Why InXpress Franchise is the Best Business Bet Now
Founded in 1999 in Manchester, U.K., InXpress is an international franchisor of parcel, freight, and delivery logistics services, serving SME customers through a software platform and global network of 400+ franchises in 14 countries, across 5 continents. InXpress maintains relationships with the tier-one parcel, air, and freight carriers around the world, offering discounted rates to franchisees that form relationships with their SME customers.
In 2013, InXpress had launched its franchising business model in India and has been franchising since then.
In 2020, a New-York based VC Hudson Hill Capital (HHC) acquired InXpress, further strengthening the InXpress business globally.
Covid-19 Impact on Logistics Industry
The Covid-19 pandemic ensured logistics, largely seen as a supporting service sector, transformed into an essential one. The logistics industry helped keep the global supply of essential goods unhindered. Many companies and customers have been willing to spend more on shipments, provided their wares could be delivered in a timely fashion.
‘Atmanirbhar-Bharat’ has provided added fuel to India’s growth story. Exports of vaccines and essential pharma products have also led to huge growth in the logistics industry.
InXpress Growth during Pandemic
The sudden pandemic and its after-effects had been devastating to InXpress’ customers & franchisees alike. At such time, InXpress stood rock-strong with its franchise network. It came up with multiple global training programs on how to mitigate risks & grow business, provided local additional support, and continues to do so.
InXpress’ operations & collections team worked selflessly to ensure unabated shipment movements and uninterrupted cash flows to our customers & franchisees, respectively.
When most companies globally were either shutting down or reducing manpower, InXpress India has added 40% more staff than last year. It has doubled its strength in collections and added more staff to its operations and business coaching teams.
Presently, InXpress has 400+ franchisees globally and 49 in India.
InXpress franchise model is simple. The brand has strong relationships with trusted courier partners, such as DHL & Blue Dart, and access to competitive rates, which SMEs are usually unable to obtain. Its franchisees can then pass these competitive rates on to their SME customers via their innovative proprietary shipment software called Webship+. Interestingly, InXpress franchisees never touch the parcels or shipments. End-to-end activities are managed by its premium carriers.
InXpress franchise model is also asset-light. The only investment that is needed is the franchise fee which is Rs 9 lakh (exclusive taxes). Its franchisees need to have a good mobile with sim, a laptop with decent internet connectivity and loads of passion for developing business & customer service.
ROI and Payback period generally depends on a combination of numbers of customers signed and marketing skills to retain good margins.
Globally, logistics is a key growth driver and is expected to remain evergreen as well as recession-free. There are reports which peg India’s logistic CAGR between 11- 17% over the next 5 years. InXpress has set a target of 50% CAGR till 2025 and sprucing up its teams and portfolios to achieve this goal.
InXpress works on the calendar year and is targeting to add 28 franchisees in 2021. It is also aiming to move around 50,000 shipments in India alone.
Last year, eight of its franchisees had a gross margin of Rs 25 lakh & upwards. In 2021, the brand expects a minimum of ten franchisees to cross Rs 25 lakh, and two franchisees to cross Rs 75 lakh.