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Quick commerce grew at 142% CAGR between FY22-25

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India’s quick commerce CAGR touched an eye-catching 142% between FY22 and FY25, according to a detailed CareEdge Analytics report. This rapid growth helped the sector’s gross order value jump from ₹2,800 crore in FY22 to around ₹64,000 crore in FY25. Quick commerce is the ultra-fast delivery segment where platforms promise groceries and daily essentials in just 10–30 minutes.

This trend shows how millions of Indians, especially young consumers in cities, now prefer instant delivery for everyday needs.


Why Quick Commerce Grew So Fast

Rising smartphone and internet users: By 2025, India had over 806 million internet users and 1.12 billion mobile connections. More people shopping online fuels quick commerce growth.

More dark stores in cities: Platforms like Blinkit, Swiggy Instamart, Zepto, and Flipkart Minutes nearly doubled their dark store count from about 1,800 in FY24 to over 3,000 in FY25. Dark stores are small warehouses closer to neighborhoods, helping deliver orders faster.

Higher platform fees: Companies raised service fees from 7–9% in FY22 to about 14–18% in FY25. This helped their fee revenue jump from ₹450 crore to ₹10,500 crore, and experts expect it could hit ₹34,500 crore by FY28.

Big push beyond metros: Quick commerce isn’t just for Delhi, Mumbai, or Bengaluru. Growth is now visible in Tier-II and Tier-III cities, where new consumers want speed and convenience.

More FMCG partnerships: Top brands like HUL, ITC, and Dabur are using quick commerce to sell products faster and test new launches.


What’s Next: Quick Commerce CAGR Outlook

Market experts see even bigger numbers ahead. By FY28, India’s quick commerce CAGR could help total gross order value rise to about ₹2 lakh crore, almost tripling in just three years. Reports also predict the share of quick commerce in total e-grocery orders could keep growing, from around 70–75% in FY25 to even higher levels by FY28.

Bernstein and Bain & Co. suggest this boom is supported by digital adoption, better logistics, and new monetization strategies like private labels, ads inside apps, and subscription models.


Risks and Challenges Ahead

Despite rapid growth, quick commerce companies face hurdles.

High costs and thin margins: Delivering in 10–30 minutes needs more delivery staff and small warehouses. Platforms like Swiggy Instamart reported wider quarterly losses, showing the model isn’t easy to scale profitably.

Reliance on big cities: Most growth is still in urban areas. For Tier‑II and Tier‑III cities, maintaining fast delivery can be harder and more expensive.

Doubts over long-term sustainability: Some experts, like TVS Capital, warn the growth may slow if consumers become less willing to pay extra for faster delivery.


Quick Commerce: A Changing Retail Story

In just three years, India’s quick commerce CAGR changed the way people buy essentials. Busy consumers now want groceries, snacks, and even ice cream in under 30 minutes. This trend is not only reshaping shopping habits but also forcing traditional retailers to adapt.

With gross order value set to touch ₹2 lakh crore by FY28, quick commerce platforms will now focus on becoming profitable while staying fast and reliable.

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