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India’s Quick Commerce retail market is on an impressive growth trajectory, with expectations for substantial expansion in the coming years. A recent report by Anand Rathi highlights that multiple players can successfully coexist within the growing Quick Commerce market.
The overall retail market in India reached Rs 76 trillion to Rs 78 trillion in 2023, and it is projected to grow to Rs 116 trillion to Rs 124 trillion by 2028. Within this, Quick Commerce’s contribution is expected to rise from a modest 0.3 percent (Rs 224 billion) in 2023 to 2-3 percent (Rs 2,320 billion to Rs 4,240 billion) by 2028, representing a compound annual growth rate (CAGR) of 60-80 percent.
The Quick Commerce sector in India is evolving on both the supply and delivery sides. On the supply side, platforms are diversifying their offerings to include new categories, coupled with tech-enabled distribution solutions that assist brands in planning and forecasting. Meanwhile, the delivery side is emphasizing faster service at lower prices compared to traditional Kirana stores, with a focus on maintaining high speed and affordability. This strategy is not only providing consumers with added convenience but is also fostering habit-forming behaviors that continue to attract a growing base of consumers, particularly in today’s increasingly busy and digitally driven society.
The increasing penetration of online shopping is also drawing in new consumer segments, such as housewives and senior citizens, who are increasingly turning to QuickCommerce platforms for their everyday needs.
Currently, over 90 percent of Quick Commerce contributions are coming from India’s top eight cities (metros and tier-1 cities), which are home to mid- to high-income households. However, with the market expanding, players are now targeting Tier II and Tier III cities, recognizing the untapped potential and aiming to reach value-conscious buyers beyond the metros.
Blinkit, for example, has expanded its footprint to 45-50 cities in the past two years, with its store count reaching 791 in Q2 FY25. New stores are being opened in cities like Kochi, Ajmer, Alwar, Nagpur, Vishakhapatnam, and recently in Lonavala, Khandala, and Hisar. The company’s goal is to reach over 1,000 stores by the end of FY25 and 2,000 stores by the end of FY26.
Instamart has extended its presence to 54 cities and is aiming to expand to 75 cities. The company has increased its dark store count from 523 in FY24 to 609 in Q2 FY25, with a target of reaching 1,000 dark stores by the end of FY25.
Zepto has grown significantly, with 650 dark stores as of December 2024 (75 percent of which are located in the top 10 metro cities), up from 340 in FY24. It is witnessing positive momentum in Tier II cities like Nashik, Jaipur, and Chandigarh, where stores are receiving over 1,000 orders per day.
Flipkart Minutes, currently operating in only three cities—Mumbai, Delhi, and Bangalore—has 100 dark stores and plans to expand its presence in more Tier I cities and metros.
In line with the market’s expansion, these companies are diversifying their assortments beyond groceries and FMCG products to include toys, gaming, luggage, sports, home improvement, and electronics. They are also experimenting with returns and exchanges for categories like apparel, footwear, and lifestyle products, signaling a shift from food to a broader range of products in the Quick Commerce model.
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