India’s Quick-Commerce Boom
Rs 64,000 Crore Worth Orders in FY25
Quick commerce is booming in India. In FY25, people spent a huge Rs 64,000 crore on platforms like Blinkit and Instamart. This is a big jump from the Rs 30,000 crore spent the year before.
What’s Behind This Growth?
Several factors are driving this rapid growth:
- More people are shopping online than ever before.
- Platforms are increasing their fees.
- Companies are focusing on making profits.
A report by CareEdge Advisory highlights this trend. They predict the gross order value will triple by FY28, reaching Rs 2 lakh crore.
Revenues Are Soaring
Revenues for these platforms have grown significantly. They rose from Rs 450 crore in FY22 to Rs 10,500 crore in FY25. CareEdge Advisory expects this to rise further to Rs 34,500 crore by FY28.
Profitability in Focus
Quick-commerce firms are changing their strategies to boost profits. They are now focusing on:
- Advertising
- Paid subscriptions
- Private-label products
- Tech-driven inventory optimization
This shift is making them more profitable. The sector’s ‘take rate’ has climbed to 18% in FY25, up from just 7-9% in FY22.
What’s Next for Quick Commerce?
Tanvi Shah, head of CareEdge Advisory, believes the next phase of growth will come from:
- Technology-led innovations
- Expanding into tier-2 and tier-3 cities
Despite the boom, quick commerce still makes up only 1% of India’s overall grocery demand. However, as more people value convenience, this sector is expected to grow even more.
India’s Digital Growth
India is now the world’s second-largest online shopping market. In 2024, there are over 270 million digital buyers. The e-commerce market saw a 23.8% increase that year.
Smartphone usage and internet access are also growing rapidly. By early 2025, there will be more than 1.12 billion mobile connections.
Supporting Infrastructure
The number of dark stores or micro-warehouses has surged by over 70%. There are now 3,072 in FY25. These stores have also seen a 25% rise in average revenue per outlet.
