(Reuters) – India’s booming quick-commerce sector could wrestle to take care of its present tempo of progress as enlargement past main cities stays restricted and competitors from bigger e-commerce gamers intensifies, in keeping with a report by Blume Ventures.
These firms ship groceries to electronics inside minutes and their market share has grown to $7.1 billion in fiscal yr 2025 from simply $300 million in 2022, the enterprise capital agency’s Indus Valley 2025 report stated.
India’s “quickest rising business phase ever”, dominated by the likes of Zomato-owned Blinkit, Zepto and Swiggy Instamart, logged a 24-fold enhance in gross order worth (GOV) in the identical interval, it stated.
Nevertheless, the phase will quickly see its month-to-month transacting consumer (MTU) progress tapering, very like the nation’s ride-share, meals supply and e-commerce sectors earlier than, the report warned.
Furthermore, the quick-commerce corporations face stiff competitors from giant e-commerce platforms corresponding to Walmart’s Flipkart, Amazon and Reliance, who’re getting ready to launch their very own quick-commerce operations.
“… whereas it’s not assured they’ll be capable of counter quick-commerce gamers, the elevated competitors could have some affect on the business revenue pool,” the report stated.
Moreover, the increasing sector will doubtless begin to have an effect on the native grocery ecosystem and appeal to regulatory measures to verify its progress, the report stated.
Earlier this month, TVS Capital Funds Chairman Gopal Srinivasan in an interview to Reuters stated that India’s quick-commerce frenzy is a “passing fad” and unsustainable in the long term.
Blume Ventures was one of many earliest backers of crisis-laden quick-commerce agency Dunzo, which is reportedly getting ready to shutdown after a spate of layoffs, founder exits and unpaid vendor dues.
(Reporting by Ashwin Manikandan; Modifying by Sumana Nandy)
