India’s Quick Commerce retail market is witnessing rapid growth, with multiple players poised to thrive, according to a recent report by Anand Rathi. The overall retail market in India, valued at ₹76-78 trillion in 2023, is projected to grow to ₹116-124 trillion by 2028. Quick Commerce, which contributed just 0.3% (₹224 billion) in 2023, is expected to surge to 2-3% (₹2,320-4,240 billion) by 2028, growing at an impressive CAGR of 60-80%.
Supply and Delivery Innovations Driving Growth
The supply side of Quick Commerce is seeing significant transformations. Platforms are diversifying their product categories, moving beyond groceries and FMCG to include toys, gaming, luggage, sports, home improvement, and electronics. Advanced technology-led distribution models are enhancing planning and forecasting capabilities, allowing brands to optimize supply chains efficiently.
On the delivery side, platforms are prioritizing ultra-fast delivery at competitive prices, outperforming traditional Kirana stores. This dual approach—speed and affordability—is driving consistent consumer engagement, making Quick Commerce an indispensable part of urban digital lifestyles.
Consumer Behavior and Market Trends
The report highlights shifting consumer patterns, with Quick Commerce becoming a preferred choice for housewives and senior citizens. Convenience, affordability, and digital accessibility are the key drivers. Over 90% of Quick Commerce sales currently come from metro cities and Tier-1 regions, driven by mid-to-high-income households.
However, companies are now focusing on Tier-2 and Tier-3 cities to unlock untapped growth opportunities. These regions are emerging as new growth hubs, offering significant potential for expanding consumer bases.
Player-Specific Growth Strategies
Blinkit
Blinkit has aggressively expanded its footprint to 45-50 cities in the past two years. The platform operates 791 dark stores as of Q2 FY25, with plans to scale up to 1,000+ stores by FY25 and 2,000 stores by CY26. New markets like Kochi, Ajmer, Alwar, Nagpur, and Vishakhapatnam are witnessing fresh store openings.
Instamart
Instamart currently serves 54 cities and plans to reach 75 cities by FY25. The platform increased its dark store count from 523 in FY24 to 609 in Q2 FY25, with a target of 1,000 stores by FY25-end.
Zepto
Zepto has rapidly expanded to 650 dark stores by December 2024, up from 340 in FY24. Approximately 75% of these stores are concentrated in the top 10 metro cities. However, Tier-2 cities like Nashik, Jaipur, and Chandigarh are witnessing strong traction, with stores processing over 1,000 orders daily.
Flipkart Minutes
Flipkart Minutes is currently operational in Mumbai, Delhi, and Bangalore, with 100 dark stores. The platform is planning further penetration into Tier-1 cities and metros before venturing into smaller cities.
Expansion Beyond Groceries
Quick Commerce players are no longer limited to groceries and FMCG products. Companies are diversifying their offerings to include toys, gaming accessories, luggage, sports equipment, home improvement items, and electronics. Furthermore, they are exploring the potential for returns and exchanges in categories such as apparel, footwear, and lifestyle products—signaling a move towards “everything commerce.”
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India’s Quick Commerce market is expected to become a crucial driver of the retail sector’s growth. With increasing adoption across Tier-2 and Tier-3 cities, strategic supply chain innovations, and an expanded product portfolio, the sector is set to redefine the retail landscape.
The report underscores that multiple players can co-exist in India’s burgeoning Quick Commerce market. The combination of rapid technological advancements, supply chain optimization, and evolving consumer preferences will pave the way for sustained growth. As Quick Commerce continues to integrate into everyday lives, it is poised to play a central role in shaping India’s digital economy.
This report draws insights from Anand Rathi’s market analysis.
