PROJECT REPORT

(Submitted for the degree of B.com. Honours in accounting & finance

under the University of Calcutta)

Title of the Project

Rise of Quick Commerce in India – Market Size and Key Players

Submitted by

Name of the candidate : SUBIR DAS

Registration No. : 043-1111-0750-22
CU Roll No. : 221043-21-0237
Name of the College : HERAMBA CHANDRA COLLEGE
College Roll No. : 225591

Supervised by

Name of the Supervisor : Prof. ALOLIKA PODDER

Name of the College : HERAMBA CHANDRA COLLEGE

Month & Year of Submission

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 ACKNOWLEDGEMENT

I am using this opportunity to express my gratitude to everyone

who supported me throughout the course of this B.com project. I
am thankful for their aspiring guidance, invaluably constructive
criticism and friendly advice during the project work. I am sincerely
grateful to them for sharing their truthful and illuminating views on a
number of issues related to the project.

I extend my sincere appreciation to Prof. ALOLIKA PODDER, mentor,

who provided his valuable suggestions and precious time in
accomplishing my project.

Lastly I would like to thank the almighty and my parents for their
moral support and friends with I shared my day to day experience
and received lots of suggestions that improved my quality of work.

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 Supervisor’ Certificate

This is to certify that SUBIR DAS a student of B.Com Honours in

Accounting & Finance of HERAMBA CHANDRA COLLEGE under the
University of Calcutta has worked under my supervision and guidance
for this Project work and prepared a Project report with the title “ Rise
of Quick Commerce in India: Market Size and Key Players.

This project report, which he is submitting, is his genuine and original

work to the best of my knowledge.

Place : Kolkata Signature :

Date : Name : Prof. ALOLIKA PODDER
Designation : Faculty of Department
of commerce
Name of the college: Heramba
Chandra College

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 Student Declaration

I here by declare that the project work with the title “Quick
Commerce in India” submitted by me for the partial fulfillment of the
degree of B.Com Honours in Accounting & Finance under the
University of Calcutta is my original work and has not been
submitted earlier to any other University/Institution for the
fulfillment of the requirement for any course of study.

I also declare that no chapter of this manuscript in wholeor in part

has been incorporated in this report from any earlier work done by
others or by me.
However, extracts of any literature which has been used for this
report has been duly acknowledged providing details of such
literature in the references.

Place : Kolkata Signature :

Date : Name : SUBIR DAS
C.U. Registration No.: 043-1111-0750-22

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 INDEX

SL NO. PARTICULARS PAGE

NO.
Chapter.1

INTRODUCTION 6-9

Chapter.2 CONCEPTUAL FRAMEWORK 10-19

Chapter.3 DATA ANALYSIS AND FINDINGS 20-38

Chapter.4 CONCLUSION AND RECOMMENDATION 39-41

Chapter.5 REFERENCES 42

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 CHAPTER 1
Quick Commerce Industry

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INTRODUCTION
The digital commerce landscape has undergone rapid transformation, leading in
an era of unparalleled convenience where consumers expect goods and services
at their fingertips, often within hours. At the forefront of this evolution is quick
commerce, a paradigm shifts in retail typified by ultra-fast delivery services.
Quick commerce, the third-generation business model following traditional
retail stores and e-commerce, has surfaced as a disruptive force, particularly in
dynamic urban centres like Bangalore, India, challenging traditional concepts of
consumer engagement and revolutionizing the retail landscape. The word ‘Quick
Commerce’ is a business model where instantaneous is always guaranteed.
This study aims to explore the transformative impact of quick commerce on
consumer decision making processes. It seeks to understand how the speed and
convenience offered by quick commerce influence various dimensions of the
consumer decision-making process, with a focus on decision-making speed,
impulsiveness, and satisfaction levels. By understanding these dynamics,
businesses can tailor their quick commerce strategies to effectively meet
consumer needs and enhance overall satisfaction.
The basic feature of this study lies in its deep insight into the cognitive and
emotional response to quick -commerce by offering new idea of how instant
delivery and distribution service may reshape traditional shopping behaviours.
This paper projects novel observation into the relationship between quick
commerce and consumer psychology, offering valuable implications for
businesses and policymakers in adapting to this fast-evolving digital commerce
landscape. Moreover, this research offers a framework of psychological pattern
of paradigm shift towards modern day digital consumerism from traditional
consumerism in the context of global technological advancements by exploring
and highlighting new area of change of consumer impulsivity and satisfaction by
entering into immediate delivery system of services on the platform of altering
pattern of consumer behavioural pattern across different demographics.
The novelty of this study stands on its deep investigation into the cognitive and
emotional responses of consumers to quick commerce, offering new
understanding into how instant delivery services reshape traditional shopping
behaviours. By highlighting the transformation in consumer impulsivity and
satisfaction, as well as exploring how the speed and convenience of quick
commerce alter consumer behaviours across different demographics, this
research provides a psychological perspective on the rapid alteration towards
digital consumerism in the context of global technological advancements

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LITERATURE REVIEW
1. Emerald insight Avil Saldanha , 8 August 2023 : Zepto faces backlash for its
controversial 10 minute instant delivery service, criticized by influential figures
and customers for potential risks to delivery partners' lives.
2. The Seybold report, Anand Pawar : Recent internet advances drive the surge
in online food and grocery services, revolutionizing the industry through
accessible online ordering. Despite Asia's sixth largest grocery market, platforms
like Swiggy, Zepto and Big Basket hold only 5-8% market share, as technology
disrupts traditional mom-and-pop shops and attracts consumers with ease and
convenience.
3. Research gate, Mohammad Affan Akhtar and Md. Rashid Farooqi, October
2022 : In recent years, the convergence of technology and the COVID-19
pandemic has driven a significant shift in consumer behavior towards app-based
grocery shopping. Factors such as technology awareness, widespread
smartphone and computer usage, and the need for convenience amid the
pandemic have propelled the global e-commerce industry's remarkable growth.
Online shopping, once limited, now offers diverse products, doorstep delivery,
and various payment options, fostering consumer trust. The pandemic further
accelerated the preference for online grocery shopping, emphasizing
convenience, time-saving, and safety.
4. IIM Ahmedabad, Gauri Ranjekar Debjit Roy, March 2023: In the past decade,
e-commerce has surged in India due to changing consumer behavior and
widespread internet access. The COVID-19 pandemic accelerated this trend,
particularly in online grocery shopping. The quick commerce industry's growth
reflects its dynamic nature. This paper reviews the industry's operating model,
diverse business approaches, and emphasizes the importance of automating
dark stores for efficiency. Challenges include long-term sustainability, calling for
innovative models aligning with economic, social, and environmental goals. The
industry's positive outlook requires optimizing the supply chain for agility and
automation.
5.LinkedIn, Atharv Singh,, October 3, 2023: India's Quick Commerce Market is
set to grow at a 67% CAGR (2023-28). The report by MarkNtel Advisors covers
market dynamics, size, segmentation, and key players like Swiggy Instamart and
Zepto. Instant delivery is driving market growth.

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OBJECTIVES OF THE STUDY
• To study the emergence of Quick commerce in India.
• To study the challenges faced by Quick commerce.
• To study the challenges faced by the local grocers.
RESEARCH METHODOLOGY
The research in this particular project was done to collect information on how
grocers, Quick commerce are facing challenges in India and the emergence of Q-
Commerce in India.
Research is a methodical and organized approach to collecting, documenting,
and examining information with the aim of supporting business decision-
making. It encompasses a patient and scientific exploration, where the
researcher meticulously scrutinizes data to uncover comprehensive insights on
the subject.
Secondary information refers to pre-existing data that is not generated by the
conducting organization. This type of data is gathered by an entity unrelated to
the current research but collected for a different purpose in the past. When a
researcher utilizes such pre-existing information, it transforms into secondary
data for the present investigation. This practice not only conserves time, effort,
and resources but also enhances the overall value of the research.
The Primary information is taken by an interview of 10 Local Grocers and the
responses are recorded on the basis of the problems and their effective
solutions used by the grocers.

LIMITATIONS OF THE STUDY

The following limitations were imposed during the study.
1. Secondary data included herein has been taken from the World Wide Web.
Since such information is not considered 100% accurate, biasness or inaccuracy
in the particular website may result in faulty conclusions.
2. The extensive scope of the project, coupled with time constraints, has limited
the in-depth exploration of the topic. However, I have tried to take all possible
measures to ensure that these limitations do not become a hindrance in bringing
out the true meaning of the concerned topic. The study has been performed
with due acknowledgement to all the limitations, the avoidance of which was
beyond my control.

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 CHAPTER 2
CONCEPTUAL FRAMEWORK

NATIONAL
&
INTERNATIONAL SCENARIO

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QUICK COMMERCE IN INDIA
CONSUMER BEHAVIOUR TOWARDS Q-COMMERCE IN INDIA
IIM-Bangalore initiated a survey to assess customer sentiments regarding Quick
Commerce (Q commerce) and understand their expectations. While customers
expressed enthusiasm for swift deliveries, the impact of delivery charges
influenced their purchasing decisions. In a Bangalore survey focusing on
consumers' responses to Q-commerce, the results indicated that 58% preferred
Swiggy Instamart, 17% favored Blink It, 14% chose Zepto, and 11% opted for Big
Basket. Users emphasized the importance of a smooth, quick, logical, and secure
Q-commerce process, along with a desire for real-time progress updates and
precise tracking information.
Local Circles conducted a survey in India, revealing the following insights:
1. The majority of Indian consumers purchasing groceries online prioritize
convenience over speed. They are willing to wait for a few hours or even a day
for delivery but are reluctant to pay additional delivery charges.
2. Only a minimal 3% of household consumers are willing to pay a delivery fee
for groceries to be delivered within half an hour, indicating a strong aversion to
such charges.

3.In the last two years, India witnessed the rise of various Q-commerce
platforms like Swiggy Instamart, Blinkit, Dunzo, Big Basket Now, and Zepto.
These platforms have gained prominence by promising grocery deliveries within
an average 30-minute timeframe. However, despite their success, the Q
commerce delivery model is acknowledged as a work in progress, suggesting
ongoing refinements and improvements in the industry.

Q-COMMERCE KEY PLAYERS IN INDIA

Quick Commerce (Q-commerce) applications have transformed the e-
commerce landscape, as outlined in the Forbes report titled "Quick Commerce:
An Ever-Changing E-Commerce Prospect" by Amit Samsukha, Director & CTO at
EmizenTech, an adept e-commerce consultant specializing in IT infrastructure
enhancement. The leading players in the Q-commerce realm include:

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a.Blinkit :

(formerly Grofers): Blinkit, formerly known as Grofers, redefines online

shopping by providing instant access to essential items, ensuring customers
receive what they need before even lacing up their shoes. Blink Commerce
Private Limited operates Blinkit, distinct from GROFFR.COM, a real estate
services company. The focus is on freeing consumers from daily necessities,
allowing them to concentrate on more significant goals.

b. Zepto:

Zepto, named after the smallest unit of observable time in physics, prioritizes
speed. Whether surprising clients with 10-minute deliveries or expanding
nationwide, Zepto challenges preconceived notions and introduces novel
concepts in the pursuit of efficiency.

c. Swiggy Instamart:

Swiggy Instamart, branded as "INSTAMART - Instant Grocery Delivery," is a

Swiggy-powered service providing groceries to homes within 15 to 30 minutes.

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Catering to midweek runs, last-minute needs, and midnight desires, Swiggy
Instamart covers a wide range of products from snacks and beverages to fruits,
vegetables, and household essentials.

d. Big Basket:

Bigbasket.com simplifies grocery shopping, offering a laid-back approach to

browsing and purchasing food. It allows users to shop for all their food and
grocery needs conveniently from home or office, eliminating the hassles of
traffic, parking, and waiting in lines. With a diverse range of items available
online, Big Basket ensures a seamless shopping experience.

e. Dunzo:

Dunzo transforms the urban lifestyle by providing a platform to buy, move items,
and access the city efficiently. The app connects users with the nearest delivery
partner who can handle purchases, pick up items from restaurants or stores, and
deliver them promptly. In a city where time is limited, Dunzo simplifies tasks like
shopping and deliveries, making them more accessible even in the midst of a
busy schedule.

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Market Size and Growth
 2024 Value: Estimated at USD 3.05–3.49 billion
 2025 Projection: Expected to reach USD 3.49–5.5 billion, with some
estimates suggesting USD 6–7 billion.
 Long-Term Growth: Projected to grow at a CAGR of 16.07% (2025–2029),
reaching USD 9.77–9.95 billion by 2029, and potentially USD 13.38 billion
by 2032 (CAGR 20.3%).
 E-Grocery Dominance: In 2024, q-commerce accounted for over two-
thirds of e-grocery orders and 10% of total e-retail spending.
 Market Share: Q-commerce’s share in India’s retail market grew from
0.4% in 2023 to a projected 2.2–3.6% by 2028, disrupting unorganized
retail.

Trends and Innovations

 Product Expansion: Beyond groceries, platforms now deliver electronics,
beauty products, home decor, and premium items like iPhones (e.g.,
Blinkit’s partnership with Apple resellers).
 Omnichannel Retail: 77% of Indian shoppers prefer blending online
research with in-store purchases, pushing q-commerce to integrate with
offline retail.
 Pricing Strategy: Q-commerce offers 10–15% lower prices than local
stores by bulk-buying directly from manufacturers.
 Average Order Value (AOV): AOV rose from INR 250 to INR 500, with
Blinkit leading at INR 625 in Q2 2024, driven by premium categories.
 Sustainability: Eco-friendly practices like electric delivery vehicles are
gaining traction to appeal to environmentally conscious consumers

Challenges
 Profitability: High operational costs and capital-intensive dark store
networks raise concerns about long-term profitability

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  Regulatory Hurdles: Government concerns about q-commerce
impacting small businesses and kirana stores may lead to stricter
regulations.
 Consumer Loyalty: Retaining customers in a competitive market with
low switching costs is challenging.
 Kirana Disruption: 52% of local stores report sales declines due to q-
commerce, creating tension with traditional retail.

INTERNATIONAL SCENARIO

The global market for Quick Commerce was estimated at US$111 billion in 2024
and is projected to reach US$352.8 billion by 2030, growing at a CAGR of 21.3%
from 2024 to 2030. This comprehensive report provides an in-depth analysis of
market trends, drivers, and forecasts, helping you make informed
businessdecisions.

The growth in the global quick commerce market is driven by several factors,
including increasing urbanization, rising consumer demand for instant delivery
services, and advancements in logistics automation. The rapid proliferation of
dark stores and micro-fulfillment centers has enabled Q-commerce platforms to
reduce fulfillment times and improve delivery accuracy.
The expansion of digital payment solutions and mobile wallets has further
facilitated frictionless transactions, enhancing the overall customer experience.
The increasing investment in AI-driven logistics optimization and predictive
analytics is improving order accuracy and reducing operational inefficiencies.
Additionally, the rise of direct-to-consumer (DTC) brands and digital-first
retailers is expanding Q-commerce beyond groceries, into categories such as
fashion, electronics, and beauty products. As consumer expectations for speed
and convenience continue to evolve, the Q-commerce market is poised for
significant growth, with companies racing to refine their fulfillment models and
enhance service reliability.

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KEY PLAYERS

1.SARISUKI:

SariSuki is a Philippine-based startup focusing on quick commerce, also known

as "Q-commerce" or "on-demand delivery". They aim to provide hyper-local
delivery of essentials and groceries through their app, aiming for 15-minute
delivery times. SariSuki uses a community leader model, where local individuals
act as agents to assist customers and source products.

2.RAPPI

Rappi is a prominent Latin American super app that excels in quick commerce,
offering a wide array of services like food delivery, groceries, and more. Its core
function is a three-sided marketplace connecting couriers, retailers, and
customers. Rappi has a strong presence in countries like Mexico, Brazil, and
Colombia, delivering goods rapidly, often within 30 minutes.

3.GOPUFF

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Gopuff is a quick commerce company focused on rapidly delivering everyday
essentials like snacks, groceries, and household items to customers within 30
minutes. It operates a network of micro-fulfillment centers, allowing it to
maintain inventory and efficiently deliver orders, often directly from the
warehouse to the customer. Gopuff's business model involves purchasing
products directly from manufacturers, storing them in its facilities, and then
selling them to customers at a profit, plus a delivery fee

4.FLINK

Flink is a German quick commerce company offering on-demand grocery

delivery within minutes, typically 10 minutes. It operates a network of hyper-
local "dark stores" (warehouses not accessible to the public) to fulfill orders
efficiently. Flink delivers groceries using e-bikes, emphasizing speed and
convenience.

MARKET SIZE AND GROWTH

 2024 Value: Estimated at USD 45.8–170.8 billion, with variations across

sources.
 2025 Projection: Projected to reach USD 184.55–200 billion, growing at a
CAGR of 9.01–25%.
 Long-Term Growth: Expected to reach USD 337.59–352.8 billion by 2030
(CAGR 9.01–21.3%) and USD 626.5 billion by 2033 (CAGR 23.5%).
 Regional Leaders: China leads with a projected revenue of USD 92.68
billion in 2025 and a 23.9% user penetration rate. Emerging markets like
Southeast Asia and Latin America are also key growth areas.

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TRENDS AND INNOVATIONS

 Product Diversification: Non-food retail (electronics, pet care,

cosmetics) saw a 120% surge in orders, with supermarkets up 76% in
2022 (Glovo data).
 Dark Stores and Micro-Warehouses: Global adoption of hyper-local
warehouses reduces delivery times. Gorillas and Flink use dark stores in
urban centers.
 Payment Trends: Cash-on-delivery holds a 57% share globally (2022), but
online payments are growing due to digitalization and security
improvements
 AI and Automation: AI-driven inventory management and logistics
optimization enhance efficiency.
 Eco-Friendly Delivery: Companies are adopting sustainable practices to
appeal to environmentally conscious consumers.

CHALLENGES

 Profitability: High operational costs and low population density in some

markets (e.g., US, Europe) hinder profitability compared to India
 Cybersecurity: Rising phishing and data breaches (19 billion records
exposed in 2023) erode consumer trust.
 Regulatory Barriers: Stringent data privacy laws and multilayered
regulations increase compliance costs.
 Infrastructure Gaps: Developing and underdeveloped countries lack
adequate digital infrastructure, limiting q-commerce penetration.
 Tariff Impacts: Global tariff negotiations across 180+ countries are
reshaping supply chains, increasing costs.

COMPARATIVE INSIGHTS

 India vs. Global Markets: India’s q-commerce thrives due to high

population density, low labor costs, and dark store efficiency, making it

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 more profitable than global peers. Globally, markets like the US and
Europe struggle with higher costs and lower density.
 Consumer Preferences: Indian consumers prioritize low prices and speed,
while global consumers (especially in developed markets) value
sustainability and product variety alongside convenience.
 Market Maturity: India’s market is at a nascent but rapidly scaling stage,
while markets like China and Western Europe are more mature but face
profitability challenges.
 Investment Landscape: India attracts significant investment due to its
growth potential, while global markets see cautious investor sentiment
due to profitability concerns.

FUTURE OUTLOOK

 India: By 2030, q-commerce could reach USD 40 billion, driven by

expanded product categories, omnichannel integration, and rural
penetration. Companies must focus on profitability, customer retention,
and regulatory compliance.
 Global: The market is expected to hit USD 337.59–352.8 billion by 2030,
with emerging markets like Southeast Asia and Latin America leading
growth. Sustainability, AI-driven logistics, and tariff-adjusted supply
chains will shape the future.

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 CHAPTER 3
DATA ANALYSIS AND FINDINGS

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DATA ANALYSIS
Total Addressable Market (TAM)
 The quick commerce market in India currently exhibits a penetration rate
of only 7% of the potential market, with a total addresable market at
$45b, surpassing that of food delivery, indicating that a significant
opportunity remains untapped
 The Quick Commerce Industry In India Market size is estimated at USD
3.34 billion in 2024, and is expected to reach USD 9.95 billion by 2029,
growing at a CAGR of greater than 4.5% during the forecast period (2024-
2029).

amount (USD bn)

50 45
45
40
35
30 27
25
amount (USD bn)
20
15
10
5
0
FOOD DELIVERY QUICK COMMERCE

GMV of Quick Commerce in India

 Rapid Scaling: GMV in India’s Quick Commerce sector jumped for just
$0.1B in FY20 to $3.3B in FY24, reflecting an exponential adoption curve.
 Future Projection: The market is projected to grow to around $6B in FY25,
showing a growth rate of 82% yoy- indicating robust consumer demand
and a rapidly expanding footprint.

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 6

3.3

1.9

0.5
0.1 0.1

FY20 FY21 FY22 FY23 FY24 FY25

GMV ($Billion

YoY Growth % (FY23-FY24)

 Quick Commerce posted a 73% yoy growth between FY23 and FY24,
whereas traditional E-Commerce show only 14%, meaning Quick
Commerce is growing over 5x faster.
 Implication: QC is becoming the preferred choice for instant delivery
needs, likely due to urban consumer behavior, convenience demand, and
time saving benefits.

SUPPLY CHAIN- QUICK COMMERCE

 QC platforms are partnering with manufacturers for direct sourcing, to

bypass the traditional distributor network.
 QC platform’s tech stack is built to ensure continuous improvement in
processes, while ensuring high agility and quick turnarounds across the
value chain.
 Tech is extensively used for better demand forecasting, logistics
management, inventory management, managing risks, simplifying
warehousing operations, preventing stock-outs and lowering wastage,
amongst others

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DARK STORES: HEART OF QUICK COMMERCE

Sizing of Stores
Dark stores are typically 2500-4000sq. in size and are carved out of shuttered
buildings or gone-out-of-business stores.
Cost Savings
A Dark store can save upto 23% of the total delivery cost and and time to
delivery.
Store Radius
Each dark store fulfils orders placed by customers within a radius of 2-3km,
helping them serve corners of cities and semi urban areas.
Mother Warehouse

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Large mother warehouses are strategically located on city outskirts, to support
a network of 30-40 dark stores. These warehouses, ranging from 20,000 to
175,000 sq. ft., serve as the backbone of dark store operations, ensuring
efficient inventory management and swift deliveries.

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LOGISTIC COMPANIES ENTERING QC

Logistic Players Looking to Enter the Market

 As quick commerce gets bigger and busier, logistics players are sensing
an opportunity while platforms also need logistics infrastructure and
expertise

 Third-party logistics firms such as Delhivery and Xpressbees, which have

hither to focus on servicing ecommerce orders, are entering the quick-
commerce sector as demand continues to surge from top platforms

 Delhivery the largest third-party logistics has started to manage Swiggy

Instamart’s larger warehouses that supply to small dark stores.

 Xpressbees, which collaborates with multiple e-commerce companies and

direct-to-consumer brands, is currently discussing partnerships with key
players in the industry.

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QUICK COMMERCE - FMCG HIGHLIGHTS
Leading Quick Commerce Platform – GMV Mix

80%
70%
60%

40%
30%
20%

Dec-22 Dec-23 Dec-24

Grocery 80% 70% 60%
Non-Grocery 20% 30% 40%

Grocery Non-Grocery

Interpretation:
 Quick commerce platforms (like Blinkit, Zepto, etc.) are evolving beyond
just grocery delivery.
 Non-grocery sales are growing significantly - rising from 20% to 30% of
total GMV in just one year.
 This indicates: Diversification in consumer demand
 Customers are increasingly purchasing items like beauty products,
electronics, personal care, and home essentials through quick commerce
platforms.
 Platforms are expanding product listings and warehouse setups to
accommodate faster delivery of non-grocery items.
 If the trend continues, non-grocery could hit 40% of GMV, turning quick
commerce into a more balanced multi-category platform-challenging
traditional e-commerce in speed and convenience.

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FMCG Companies Revenues from QC

Interpretation:
 Dabur leads the pack with 30-32% of its beverage revenue coming from
quick commerce - showing that beverages are well-suited for impulse or
immediate consumption, making QC a perfect fit.
 HUL's ice cream segment gets 10% of its revenue from QC again, a
category dependent on speed and temperature control, which quick
commerce handles well.
 Nestlé lags with only 3.3% from QC, although nearly 50% of its broader
eCommerce sales show digital growth is important to them.

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Quick Commerce Players

Well Established/ Existing Players Upcoming/New Entrants

KEY PLAYERS - FY24 AOV & MARKET SHARE

Interpretation:
 Blinkit leads with the highest AOV at
₹625, suggesting:
 Higher-ticket purchases (possibly
non-grocery or premium grocery).
 Stronger customer base in metro
areas with more disposable income.
 bbnow follows with ₹500+, indicating
a solid mid-tier position.
 Swiggy Instamart and Zepto have
lower AOVs (₹460 & ₹450),
suggesting:
 More frequent, lower-value or
essentials-driven purchases.

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  Likely targeting younger, cost-sensitive customers or focusing on fast,
small orders.

Interpretation:
1. Blinkit is leading both in value and volume:
 Highest AOV and largest market share show strong customer retention
and premium positioning.
 Likely winning in categories beyond groceries (like beauty, electronics,
etc.).
2. Swiggy Instamart is very close behind:
 Nearly tied in market share, but lower AOV suggests it may be
winning on affordability and frequency rather than order size.
3. Zepto is the disruptor:
 Though AOV is lowest, a 20% share indicates fast expansion and
good traction among younger or convenience-focused shoppers.
4. BigBasket/Dunzo need reinvention:
 Their 4% market share highlights a need to invest more in delivery
speed, assortment, or customer experience.

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 BLINKIT
 Blinkit, erstwhile Grofers, is a quick commerce business operated by
Zomato , In 2021, Zomato acquired 9.3% stake in Grofers for USD 100mn
and fully acquired the company the following year , post this investment
it got rebranded as Blinkit
 Blinkit, guarantees to deliver a selection of nearly 7,000 products, it
strategically partners with stores located within a 2 km radius to facilitate
swift deliveries
 90% of Blinkit’s GMV comes from the top eight cities as of FY24
 In April 2024 , Blinkit turned more valuable than Zomato’s food delivery
business , this was because of higher gross order value (GOV). Blinkit
currently expects to continue to see 60%+ YoY growth in the business
 Blinkit is looking to take its total dark store count to 2,000 by the end of
2026.Most of these stores would be in (the) top 10 cities in India.

DARK STORES CITIES SKU’S

25000+
1000 40

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KEY PERFORMANCE INDICATORS
Data1:

Interpretation:
1. Gross Order Value (GOV)
 Grew by 93% YoY — from ₹6,449 Cr in FY23 to ₹12,469 Cr in FY24.
 Indicates a massive jump in consumer spending on the platform.
 Likely driven by:
o Larger assortment (e.g. increase in non-grocery items).
o Higher average order value.
o Strong customer acquisition and retention.
2. Average Monthly Transacting Customers
 Increased from 2.9 million to 5.1 million — a 73% rise.
 Suggests:
o Strong growth in user base.
o Higher frequency or consistency in ordering behavior.
o Effective marketing, better app experience, or product
relevance.
3. Dark Store Count
 Expanded from 377 to 526 stores, adding 149 new stores YoY.
 This scale-up supports:
o Faster delivery capabilities.
o Geographical expansion (into Tier 2/3 cities likely).
o Better inventory availability and last-mile efficiency.

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PERFOMANCE TRENDS
Data2:

AOV Trends
Blinkit AOV Food Delivery AOV

₹635
₹607 ₹613
₹582

₹418 ₹419 ₹430 ₹428

Interpretation:

1. AOV Trends:
 Blinkit AOV is consistently higher than food delivery by ₹160–₹205,
indicating larger or more diverse cart sizes.
 Highest Blinkit AOV was ₹635 in Q3 FY24, likely due to festive or
seasonal spending.
 Food delivery AOV remains nearly flat (₹418–₹430), signaling
limited growth per order.

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  Data3:

5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
-1.00%
-2.00%
-3.00%
-4.00%
-5.00%
Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24
Contribution Margin -4.50% Margin
Contribution -2.70% -0.60%
% of 1.30%
GOV 2.40% 3.90%

Interpretation:

Contribution Margin Improvement:

 Blinkit moved from -4.5% (Q3 FY23) to +3.9% (Q4 FY24) — a total
improvement of +8.4% in contribution margin.
 Became contribution margin positive in Q2 FY24, showing profitability at
the order level (excluding fixed costs).
 Improvement is steady each quarter, reflecting optimization in:
o Supply chain and dark store efficiency
o Cost per order reduction
o AOV increase boosting margin

Swiggy – Instamart

 The company started with the dark store-led grocery delivery business
model in Feb 2020 under the brand name Urban Kirana, which it later
rebranded as Instamart.
 Instamart is the second biggest player in the quick commerce segment
after BlinkIt.

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  The GOV of Instamart increased by 58% y-o-y to reach ~₹8,100 Cr and
their Quick Commerce business is almost a third of the Food Delivery
business in just ~3 years.
 Swiggy is currently expanding its business to 43 cities from 27 cities ahead
of the festive season
 Delhivery — The largest third-party logistics firm has started to manage
Swiggy Instamart’s larger warehouses that supply to small dark stores
 Swiggy has a $1.4B IPO coming up, out of which proceeds will be used to
scale and grow its quick commerce business and to achieve its 1000 dark
stores milestone

Instamart – Key Metrics

Data4:

460 AOV (₹) Revenue(₹Cr) GOV(₹Cr)

2024 1100
8100

398
2023 500
5100

394
2022 100
1600

0 1000 2000 3000 4000 5000 6000 7000 8000 9000

1. AOV yoy growth 16% 2. Revenue yoy growth 120%

2. GOV yoy growth 58%

Interpretation:
1. GOV (Gross Order Value) Growth:
 Massive jump from ₹1,600 Cr in 2022 to ₹8,100 Cr in 2024.
 This indicates an explosive increase in total order volume or higher-
value baskets, especially between 2022–2023.
 YoY growth in GOV is slowing down (from +219% to +59%), possibly
due to a maturing user base or stabilizing order frequency.

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 2.Revenue Growth:
 Revenue grew 11x from ₹100 Cr (2022) to ₹1,100 Cr (2024) — even
outpacing GOV growth.
 Implies improvement in take rate (revenue as % of GOV),
operational efficiency, or introduction of higher-margin categories
(like non-grocery, private labels, etc.).
3.Average Order Value:
 AOV has grown moderately from ₹394 to ₹460 across three years.
 +16% YoY growth in AOV (2023 to 2024) shows possible:
o Higher priced SKUs per order
o Better bundling strategies
o User willingness to spend more per order

Data4:

Take Rate : Instamart had a take rate of 13.58% as on March 2024 as compared
to 9.80% in FY23. This indicates that for every ₹100 the company does in GOV,
the company earns ₹13.58

Way Ahead : The Company has taken steps to reduce their losses as shown by
the improvement in EBITDA and reduction in PAT. The Company’s focus is to
increase the AOV by a shift in Category Mix to premium offerings, increased Ad
Revenues and reduction in last mile expenses.

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Instamart V/S BlinkIt
Data5:

Value y-o-y Particulars Value y-o-y

12165 58% GOV(in ₹cr.) 9421 93%
3993 120% Revenue(in ₹cr.) 769 116%
13.58% 38.57% Take rate 18.45% 11.82%

4.20 32% Avg.mtu’s (in millions) 5.10 73%

499 16% AOV(in₹) 665 12.87%

1000 - Dark stores 1000
600 - Cities present in 40

Interpretation:
1. GOV (Gross Order Value):
 Swiggy Instamart has a higher GOV at ₹12,165 Cr vs Blinkit's ₹9,421 Cr.
 However, Blinkit’s YoY growth is stronger (93%), showing a faster
acceleration in demand and order volume/value.
2. Revenue and Take Rate:
 Swiggy Instamart’s revenue is significantly higher (₹3,993 Cr), suggesting
better monetization of its GOV despite a lower take rate than Blinkit.
 However, Blinkit has a higher take rate (18.45%) compared to Swiggy
(13.58%), meaning it extracts more value per unit of GOV.
3. User Metrics:
 Blinkit is leading in monthly transacting users (5.1M vs 4.2M), and with a
much higher YoY user growth of 73%, showing better customer
acquisition and retention.
4. AOV (Average Order Value):

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  Blinkit leads again with a higher AOV of ₹665 compared to Swiggy’s ₹499,
indicating larger basket sizes or higher-value items in Blinkit orders.
5. Market Presence:
 Swiggy Instamart is present in 600 cities—massive distribution, suggesting
broader geographic coverage.
 Blinkit is focused on only 40 cities, showing a hyperlocal strategy—but it's
yielding higher AOV and take rate, indicating efficiency in dense urban
markets.
6. Dark Stores:
 Both companies operate 1,000 dark stores, meaning infrastructure scale
is equivalent, making user engagement and order efficiency a crucial
differentiator.

 Blinkit is operating more efficiently with better margins, higher AOV, and
faster user growth, despite a much narrower geographic focus.

 Swiggy Instamart, on the other hand, has achieved greater national scale
and revenue, but may need to work on improving unit economics and user
engagement to catch up with Blinkit's operational efficiency.

Big Basket

 BB Now, launched in Dec ‘21, is an integrated brand of Bigbasket that is

engaged in quick commerce. BigBasket plans to pivot it’s business entirely
towards quick commerce.
 BigBasket’s extensive experience in grocery logistics, positions it well to
manage the complexities of rapid expansion. The venture currently has a
presence in 10 metros and over 25 tier-2 cities
 They offer a wide range of groceries, personal and beauty care items, and
merchandise, BigBasket will also expand into categories like toys, board
games, and electronics

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  BigBasket currently has 25,000+ SKU’s, and its dark store network from
the current 400 to 700, enhancing delivery capabilities and product
availability. The 700 dark stores will include 60 large warehouses to stock
high value products.
 BBdaily, the subscription service from Tata's BigBasket, which runs as a
separate app currently will be merged into the main BigBasket app over
the coming months. This move is "part of BigBasket's larger move of
becoming a pure play quick commerce company. With the merger, the
venture is currently seeing an average order value upwards of ₹1000.

Dark stores cities SKU’s

600 300 10000

Key Performance Indicators

Updates : According to Founder Hari Menon,

the Super Saver - the slotted business and BB
Daily - the subscription business are profitable,
quick commerce needs time, but in the next 6-8
months all businesses will be profitable.
They are poised to sustain their growth rate of
20%-25% quarter-over-quarter, with quick
commerce expected to drive up to 65%-70% of
their revenue for FY25

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 CHAPTER 4
CONCLUSION AND RECOMMENDATIONS

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CONCLUSION
The quick commerce in-dustry in India is a rapidly growing phenomenon,
transforming how urban consumers shop by prioritizing speed and convenience.
While the sector offers significant opportunities for innovation, employment,
and market expansion, it also presents challenges related to worker
exploitation, environmental impact, and competition with local stores. To
ensure sustainable growth, careful regulation and a balanced approach are
crucial, focusing on labor protections, environmental standards, and equitable
growth in smaller cities.

Key Points:
Rapid Growth: Quick commerce is experiencing rapid growth in India, driven by
changing consumer preferences, technological advancements, and
urbanization.
Convenience and Speed: The industry caters to the demand for instant
gratification and offers unmatched convenience, reshaping how urban
consumers shop.
Challenges: Despite the growth, quick commerce faces challenges like high
operational costs, logistical complexities, and potential issues with worker
exploitation and environmental impact.
Regulatory Need: A balanced regulatory approach is essential to address
sustainability, labour rights, and environmental concerns, ensuring long-term
benefits for all stakeholders.
Future Potential: The future of quick commerce in India looks promising, with
continued advancements in technology and customer demand for speed.
Sustainable Growth: Businesses that innovate, adapt to consumer needs, and
address the challenges effectively will be well-positioned for long-term success
in this dynamic market.
In summary, the quick commerce industry in India is a transformative force, but
its future success hinges on a balanced approach that addresses both its
opportunities and its challenges. Careful regulation, ethical practices, and a
focus on sustainable growth are key to ensuring that this rapidly growing sector
benefits all stakeholders.

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RECOMMENDATIONS
To succeed in India's quick commerce industry, focus on enhancing customer
experience, investing in sustainable practices, and expanding product offerings
beyond groceries. Establish a strong presence in Tier 2 and Tier 3 cities, integrate
new technologies, and develop a robust post-purchase experience.
Key Recommendations:
 Enhance Customer Experience: Implement personalized services, offer attractive
subscription models with free delivery and discounts, and ensure a smooth and
reliable post-purchase experience.

 Tier 2 and Tier 3 City Expansion: Recognize the potential for growth in these regions
and develop strategies for effective market penetration, including local partnerships
and tailored offerings.

 Embrace Technology: Integrate advanced logistics technologies like automated

carrier selection, real-time tracking, and NDR management to streamline workflows
and improve delivery efficiency.

 Develop a Strong Post-Purchase Experience: Ensure seamless returns,

proactive customer support, and a positive overall experience to build
trust and loyalty.
 Fair Competition and Transparency: Comply with regulations, ensure fair
pricing practices, and avoid any actions that could stifle competition or
harm consumers.
 Data Privacy: Adhere to data protection laws and regulations, such as the
Digital Personal Data Protection Act, and ensure responsible use of
consumer data.
 Government Collaboration: Engage with government initiatives like the
Open Network for Digital Commerce (ONDC) to bring smaller vendors
onto the platform and promote a level playing field.
 Focus on Delivery Efficiency: Optimize last-mile delivery through strategic
placement of micro-warehouses or dark stores, efficient routing
algorithms, and technology-driven solutions.
By focusing on these recommendations, quick commerce companies in India can
capitalize on the growing demand for fast and convenient delivery services,
while also addressing the challenges and opportunities presented by this
dynamic market.

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 REFERENCES

BOOKS:
1. E- commerce Industry Chain

2. Form Startups To Giants – the Journey of Quick Commerce in India ,

Neetesh Gupta

3. Fundamentals of E- commerce, Dr.SUBHABRATA DE

WEBSITE:
1. HTTPS://WWW.IJFMR.COM

2. HTTPS://WWW.BMSGROUP.IN

3. HTTPS://WWW.CHRYSEUM.IN

4. https://unicommerce.com/blog/quick-commerce-india-business-
models-challenges-strategies/

5. https://www.statista.com/outlook/emo/online-food-delivery/grocery-
delivery/quick-commerce/india

6. https://www.nextias.com/ca/current-affairs/11-03-2025/rise-of-quick-
commerce-in-india

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