India’s quick commerce (Q-commerce) sector is expanding rapidly, with its Gross Merchandise Value (GMV) expected to rise from ₹64,000 crore in FY25 to nearly ₹2 trillion by FY28, as per report by CareEdge Advisory. 

• The market, which currently forms just 1% of India’s vast grocery sector, recorded a 142% CAGR between FY22 and FY25, spurred by changing consumer expectations, hyperlocal delivery models, and a growing digital infrastructure.

What is Q-Commerce?

• Quick Commerce, or Q-Commerce, is a fast-paced subcategory of e-commerce that delivers high-demand goods—such as groceries, medicines, and daily essentials—within 10 to 30 minutes of ordering. 
• It is often referred to as on-demand delivery.
• Example: Blinkit, Zepto, Swiggy Instamart, Dunzo Daily, BigBasket Now etc.

How Does It Work?

• Dark Stores & Fulfilment: Operates through local warehouses (dark stores) strategically placed in high-demand areas for rapid dispatch.
• Uses artificial intelligence to forecast demand, manage inventory, and personalize recommendations.
• Instant Dispatch: Orders are routed using proximity-based algorithms, enabling deliveries via a dense network of delivery executives.
• 24/7 Availability: Unlike traditional retailers, Q-commerce platforms operate round the clock, fulfilling urgent or impulse orders beyond normal hours.

Highlights from the Report

Key Drivers of Growth

• Digital Infrastructure: India had 806 million internet users in early 2025 (a 6.5% YoY rise), backed by 1.12 billion mobile connections and widespread smartphone adoption, even in rural regions.

• Rising Consumer Spending: From FY15 to FY25, per capita Private Final Consumption Expenditure (PFCE) grew at a CAGR of 9.68%, reflecting higher disposable incomes and evolving purchase behaviour.
• Urban and Regional Penetration: Demand is growing beyond metros, with Tier II and III cities emerging as key markets.
• Operational Backbone: The number of dark stores (small delivery hubs) grew by 70.7%, from 1,800 in FY22 to 3,072 in FY25. These stores support rapid deliveries, with average revenue per store rising 25%, signalling robust adoption.
• E-Commerce Momentum: India’s overall e-commerce market expanded 23.8% YoY in 2024 and is expected to maintain a 21.5% CAGR through 2030, creating a favourable ecosystem for Q-commerce integration.

Challenges

• Profitability Pressures: The sector is moving from a phase of rapid scaling to one focused on cost control and sustainable margins. Operational inefficiencies, high burn rates, and logistics costs remain concerns.
• Operational Efficiency: Maintaining fast deliveries while controlling costs across a growing geographic footprint remains a significant hurdle.
• Limited Market Share: Despite rapid growth, Q-commerce still forms a small fraction of India’s grocery market, making it vulnerable to macroeconomic shifts and consumer spending slowdowns.
• Tier II & III Expansion Complexity: Reaching deeper markets introduces supply chain and cost challenges, requiring targeted strategies to balance service quality and financial viability.

Outlook

• • CareEdge projects strong double-digit growth for the Q-commerce sector through FY28, driven by digital adoption, regional expansion, and evolving consumer expectations. 
  • According to CareEdge, Q-commerce in India is entering a second phase of evolution, driven by:

• Deeper penetration into Tier II and III cities

• Tech-led innovations in fulfilment, personalisation, and last-mile delivery

• Greater operational efficiency and monetisation

Way Forward

• Strengthen Gig Worker Protections: Establish clear guidelines for minimum earnings, insurance, and working hours to improve the welfare of delivery partners.
• Set Urban Zoning Norms for Dark Stores: Cities need clear policies to regulate the location and density of dark stores, balancing convenience with community interests.
• Develop a National E-Commerce Policy: A central framework can help align quick commerce with broader goals—consumer protection, labor rights, and sustainable urban planning.
• Empowering Local Retailers: To level the playing field, neighbourhood kirana stores should be digitally integrated into e-commerce platforms such as the Open Network for Digital Commerce (ONDC).

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