VelvetSky Private Limited is a DPIIT-registered startup, founded on 13 September 2023, with a clear mission: to reduce last-mile logistics costs and redefine FMCG distribution in Tier-3 and rural India. We are building a modern, data-driven distribution model that connects brands, retailers, and consumers through a lean, efficient and technology-enabled supply chain.
India’s last-mile delivery costs account for up to 25–30% of total logistics expenses in the FMCG sector (industry estimates from IBEF & Deloitte). This burden is even higher in Tier-3 and rural geographies due to fragmented demand, low order density, and weak supply chain infrastructure. VelvetSky was created to solve this exact problem.
Our Journey
Since our founding, we have built a reliable and scalable distribution network in Etawah district, Uttar Pradesh, where we currently serve 10+ FMCG brands across food, household, hygiene, and personal care categories. Our model operates on both sides of the value chain:
For Retailers:
- We supply high-quality, multi-brand FMCG products at competitive pricing.
- We focus on reducing last-mile delivery costs, which allows retailers to access faster supply and better margins.
- Our optimised routing has helped reduce per-delivery cost by 12–18% compared to the traditional distributor model (internal estimates based on route density and vehicle utilisation).
- We help new and growing brands enter Tier-3 and rural markets by integrating their products into our network.
- We offer market penetration support, demand forecasting, and real-time retailer-level insights.
- Our centralised procurement and direct-from-manufacturer sourcing reduces supply chain layers, improving cost efficiency for both sides.
The Problem We Are Solving
The Problem We Are Solving
According to industry studies and trade bodies such as FICCI, the Indian rural FMCG market is worth over ₹5 lakh crore, but distribution remains the biggest bottleneck for brands.
Most FMCG distribution in rural and Tier-3 India still operates on outdated models:
One-brand-one-distributor system
Poor route planning
Low order density
Inefficient vehicle utilisation
15–20% added cost due to middle layers
VelvetSky solve this through:
Multi-brand consolidation
Shared logistics
Route optimisation
Warehouse-first supply
Data-driven retail planning
Our Founder
Our Founder
VelvetSky was founded by Pankaj Singh, an alumnus of IIT (BHU) Varanasi, who brings a strong understanding of technology, data, and business operations. His vision for VelvetSky is to create a new-age FMCG distribution ecosystem that makes high-quality products accessible to every retailer — no matter how remote their location.
Our Vision
To build India’s most efficient last-mile FMCG distribution network, using data, technology, and shared logistics to empower both retailers and brands.