India's Quick Commerce Sector Value Rises About Fivefold to $6-7 Billion
India's quick commerce sector represented more than two-thirds of all online retail orders last year, with its overall market value increasing about fivefold to $6-7 billion compared to 2022, as indicated by a report from the consulting firm Bain and e-commerce leader Flipkart.
The sector, which is mainly led by companies like Zomato's Blinkit, also represented 10 percent of total e-retail spending in 2024, according to the report.
These services offer delivery of groceries and electronics in just a few minutes, and their market share is projected to grow by over 40 percent annually until 2030, fueled by expansion into new product categories, regions, and consumer demographics, according to the report.
"The dramatic rise of quick commerce (i.e., delivery in less than 30 minutes) has been one of the most defining hallmarks of India's e-retail market over the last two years," according to the report, which stated that the sector had over 20 million annual online shoppers and employed over 400,000 people.
Nonetheless, these platforms might encounter significant obstacles in enhancing their profitability, as they could find it challenging to expand into markets outside major urban areas and contend with fierce competition from larger e-commerce giants like Flipkart.
To sustain profitable growth, "companies must adapt their business models for markets beyond major metros, manage rising competition, and optimize supply chains", it said.
This analysis emerges at a time when companies such as Flipkart Minutes, Myntra's M-now, BigBasket's BB Now, and Amazon's Tez have entered the industry with their respective quick commerce solutions.
However, certain industry analysts anticipate that this surge may be fleeting.
A report from Blume Ventures released last month indicated that the sector might find it difficult to sustain its current growth trajectory.
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In a discussion with Reuters, TVS Capital Funds Chairman Gopal Srinivasan remarked that the quick-commerce trend is merely a "passing fad" and not viable in the long term.