India’s quick commerce sector is witnessing rapid growth. And a new report just stamped that statement. QCom platforms like Blinkit, Zepto, BigBasket and Swiggy Instamart (known for delivering products within minutes) accounted for over two-thirds (~ 70%) of all online grocery orders, according to a report by Flipkart and Bain & Company. This is a significant increase from around 35% in 2022.
Additionally, the report suggests that quick commerce contributed to one-tenth (~ 10%) of the total e-retail spending in the country. The sector reached a gross merchandise value (GMV) of $7 billion in 2024, a notable growth from $1.6 billion in 2022. It is projected to grow at an annual rate of over 40% until 2030, fueled by category expansion, internet penetration in Tier 2-3 cities, and a growing customer base.
The more interesting part is that while ‘quick commerce’ initially focused on grocery deliveries, 15-20% of its GMV now comes from categories like general merchandise, mobile phones, electronics, and apparel. With over 20 million annual online shoppers and more than 400,000 employees working in the sector, quick commerce is emerging as a critical component of India’s digital economy.
Meanwhile, the report also reveals that quick commerce contributed nearly 50% of the total growth in India’s e-retail sector in 2024. The broader e-retail market, which reached almost $60 billion in GMV last year (2024), saw growth slow to 10-12% (down from historical highs of 20%) due to weakened private consumption. However, a rebound is expected from the festive season of 2025, with e-retail projected to grow beyond 18% annually, reaching $170-$190 billion by 2030.
Notably, a major factor driving this growth is India’s rising per capita GDP. As per the report, once India’s per capita GDP crosses $3,500–$4,000 – consumer spending on discretionary items (non-essential goods) and online shopping tends to increase significantly. For instance, in Indian states where per capita GDP is already above $3,500 – online retail penetration is 1.2 times higher than in less wealthy states.
In terms of market maturity, cities like Coimbatore and Vadodara, which have high e-retail penetration and wealthier consumers, spend about 40% more per person on e-commerce than nascent markets like Prayagraj and Warangal.
However, despite such remarkable expansion, challenges still persist. The viability of quick commerce beyond top-tier cities remains uncertain, with nearly 85% of its GMV in 2024 coming from the top six metros. In fact, sustaining profitability also remains a key challenge. Lower order density, reduced purchase frequency, and lower spending per order in smaller markets could impact profitability.
Additionally, rising competition from major players including Flipkart Minutes, Myntra’s M-Now, BigBasket’s BB Now, and Amazon’s Tez (initially launched as a pilot in Bengaluru in December 2024) is raising pressure on margins. Even, experts warn that increasing losses in the sector, intensified by competition and operational challenges, could hinder long-term sustainability.
Speaking of financial boost for QCom startups, last year (2024), India’s quick commerce sector raised approximately $13.7 billion in venture capital funding, accounting for a significant portion of the country’s overall startup investments. For example, in December 2024, FirstClub raised $8 million from Accel and other investors to offer quick commerce services for premium groceries.
