₹1 Lakh Store
⌘K
GETTING STARTED
FIND — Get an Idea
VALIDATE — Hit PMF (Phase 3)
UNIT ECONOMICS — First (Phase 4)
SCALE — Build to ₹1L/mo
AI & AUTOMATION
ANALYTICS & DATA
FINANCE
    • Cash Flow Projection
    • Working Capital Needs
    • COD Float Management
    • GST Filing SOP
    • TDS on Payments Guide
    • MSME Loan Options
    • Revenue-Based Financing
    • P&L Template (Monthly)
TOOLS & CALCULATORS
RESOURCES
  1. FINANCE
  3. COD Float Management

Finance

COD Float Management

In Indian D2C, 60%+ of orders are Cash on Delivery. That means 7-14 days where your money is in transit. Understanding and managing COD float is the difference between growing and drowning.
7-14 Day Float60%+ COD Orders₹20-40 COD Fee20% Buffer Needed

7-14

Day Float

Days for COD money to arrive

60%+

COD Orders

Typical for Indian D2C

₹20-40

COD Fee

Per order handling charge

20%

Buffer Needed

Extra cash for COD delays

COD Remittance Timeline

Courier PartnerRemittance TimelineCOD Collection FeeNotes
Delhivery3-7 business days after delivery₹20-35 per shipmentFastest remittance for most pincodes
Shiprocket5-10 business days₹20-40 per shipmentAggregator — timeline depends on the carrier used
BlueDart3-5 business days₹30-50 per shipmentPremium service, reliable but expensive
DTDC7-14 business days₹25-40 per shipmentSlower remittance, good pincode coverage
India Post10-21 business days₹10-20 per shipmentCheapest but slowest and least reliable

COD Float Calculation

How to Calculate Your COD Float

Formula: COD Float = (Daily COD Revenue) × (Average Remittance Days)

Example: If you do ₹1,00,000/day in COD orders with 10-day average remittance:

COD Float = ₹1,00,000 × 10 = ₹10,00,000 stuck in transit at any time

What this means: Even though you've earned ₹10L, that money isn't in your bank account. You need separate working capital to cover this gap.

Buffer rule: Keep 20% above your calculated float. Delays happen — couriers stall, RTO spikes, holidays delay remittance.

Cash flow warning: If 60% of your orders are COD with a 10-day remittance cycle, and you're doing ₹5L/month in revenue, ₹3L is stuck in float at any time. Without working capital to cover this, you won't be able to buy inventory or run ads — even though you're profitable on paper.
COD Float Checklist