The fast commerce sector in India is witnessing a growth, with the market rising almost 60X within the final 5 years. The surge has prompted even conventional e-commerce giants to pivot in the direction of quicker supply fashions.
In November 2024, Myntra introduced its foray into the 30-minute supply area with ‘M-Now,’ underscoring the rising competitors within the section. Amazon’s Prime service had already shortened supply timelines with same-day and one-day choices, and now others are following swimsuit.
With fast commerce gaining traction, questions come up over whether or not extra e-commerce gamers will enter this area. Vidit Aatrey, Co-founder and CEO of Meesho, shared his perspective on the Make investments Karnataka occasion in Bengaluru, suggesting that whereas fast commerce has achieved a product-market match, its enchantment stays restricted to sure classes and a selected client base.
“There are individuals shopping for issues from this section, however it’s restricted to sure classes, pushed primarily by the necessity for velocity,” Aatrey mentioned. “Shoppers who prioritise comfort are prepared to pay a premium, a platform charge, or a comfort charge. Nevertheless, nearly all of India will not be prepared to try this—and that’s the actual hole we’re working to bridge.”
In contrast to fast commerce gamers, Meesho has a distinct imaginative and prescient. “Our aim has by no means been simply to unravel for comfort, as there have at all times been gamers addressing that want, each prior to now and at this time,” Aatrey mentioned. “Many individuals in Tier-1 cities have been procuring on Amazon primarily due to its velocity—one-day supply, same-day supply. As an alternative, our focus has at all times been on bringing nearly all of the nation on-line—each customers and small companies.”
For Meesho, the important thing drivers are affordability and accessibility, moderately than ultra-fast deliveries.
In the meantime, the corporate lately raised funding from Tiger International Administration, Suppose Investments, and Mars Progress Capital, with participation from Peak XV Companions and WestBridge Capital, in keeping with Tracxn. As Meesho gears up for an IPO, it has additionally moved the NCLT for reverse flipping to India, with plans to file its DRHP within the second half of this yr.
