According to Blume Ventures’ Indus Valley 2025 report, the segment surged 24-fold in gross order value (GOV) from 2022 to FY25, making it the country’s fastest-growing industry segment.
Led by players such as Blinkit, Zepto, and Swiggy Instamart, the sector has seen an explosion in monthly transacting users (MTUs). However, much like India’s ride-hailing, food delivery, and broader e-commerce industries, the report warns that MTU growth in quick commerce is set to plateau.
Adding to the pressure, deep-pocketed giants like Walmart-owned Flipkart, Amazon, and Reliance are gearing up to enter the space. “While it is not guaranteed they will be able to counter quick-commerce players, the increased competition will have some impact on the industry profit pool, the report highlighted.
Beyond competition, quick commerce’s rapid expansion could also disrupt India’s traditional grocery ecosystem, prompting regulatory scrutiny, it cautioned.
The sustainability of the sector has already been questioned by industry veterans. Earlier this month, TVS Capital Funds Chairman Gopal Srinivasan told Reuters that India’s quick commerce boom is a “passing fad” and unlikely to last in the long run, it added.
Blume Ventures was an early investor in Dunzo, a quick commerce player now in turmoil following mass layoffs, founder departures, and mounting unpaid vendor dues.
(Edited by : Sheersh Kapoor)
First Published: Feb 25, 2025 6:15 PM IST
