Quick commerce is a type of e-commerce in a new and faster form as it focuses on online delivery services that offer customers last-mile delivery mostly in under 30 minutes. The total addressable market for Q-commerce in India is worth $45B while according to a report by Deloitte, the quick-commerce market in India will be $40B by 2030. Currently, its market size is around $2.8 billion penetrating only 1.8% of the total projected user in India as of 2024.
However, it is predicted that by 2029, the user penetration rate will rise to 4.0% as the total number of users in the Q-commerce market in India will reach around 60.6 million. This specific market is also expected to display a compound annual growth rate(CAGR) of 24.33%, which will help it project a volume of $9,951 million by 2029.
As of 2024, India boasts approximately 30 to 40 quick commerce startups that are effectively generating revenue worth $3,349 million. So, in this article, we will examine three leading quick commerce startups in India namely Blinkit, Zepto, and Swiggy while discussing their analogy for a better understanding.
Delhi-headquartered, a leading quick commerce startup in India, Blinkit is heading up to transform India’s unorganized grocery landscape through its advanced technology and innovation. Another startup that has also carved out a significant presence in this market is Swiggy Instamart.
Founded in 2014, the online food delivery company Swiggy provides quick commerce services under the name Swiggy Instamart. Alternatively, led by Adit Palicha and Kaivalya Vohla, Zepto is also coming up in the front row by promising to deliver groceries in 10 minutes.
According to the report by HSBC Global Research in collaboration with Zepto’s senior management estimated that the startup’s market share rose from 15% in March 2022 to 28% in January 2024. As a result, Swiggy Instamart’s share fell from 52% in March 2022 to 32% in January 2024. The report also confirmed that Blinkit has grown its market share to 40%, marking itself the current market leader.
Blinkit, formerly known as Grofers, filed a revenue of Rs.724Cr in FY23 which skyrocketed by 207% from Rs.236Cr in FY22. During the same period, this Zomato-owned startup reported a net loss of Rs.1190 crore increased from Rs.1021 crore. Blinkit witnessed its revenue grow by 22.5% from Rs.769Cr. in Q4FY24 to Rs.942Cr. in Q1FY25, followed by its net profit spiked 23X QoQ to Rs.43Cr. in Q1FY25 from Rs.2Cr. in Q4FY24.
Meanwhile, the quick commerce unicorn, Zepto’s revenue experienced significant growth, rising from Rs.140.7Cr. in FY22 to Rs.2024Cr. in FY23, reflecting a 1358% increase, and further soared to Rs.10000Cr. in FY24, representing a 393% growth from the previous year. Unfortunately, Zepto faced a net loss of Rs.1272Cr. and Rs.390Cr. consecutively in FY23 and FY22. In contrast, Swiggy Instamart managed to file revenue of Rs.3221Cr. in FY23 which spiked by % from Rs.2035.6Cr. in FY22.
Now drifting attention toward these three startups’ growth rates, it is estimated that Blinkit is anticipated to achieve a compound annual growth rate (CAGR) of 53% in gross order value by 2027. By contrast, Zepto is predicted to witness an exponential revenue growth rate of 14.3 times whereas Swiggy Instamart is determined to record a year-over-year growth rate of 39.7%.
Accomplishing these objectives is reliant upon securing sufficient funding. In this regard, Blinkit and Zepto reportedly have pocketed $757 million and $1.26 billion respectively. In comparison, the SoftBank-backed startup Swiggy is set to launch an IPO to raise between $1 billion and $1.2 billion, targeting a valuation of $15 billion.
In August 2024, India’s festive season started with the celebration of Raksha Bandhan and during that time, quick commerce platforms Blinkit and Swiggy Instamart broke all the records with their sales. Blinkit CEO Albinder Dhindsa confirmed that the company saw a peak of 693 rakhis sold per minute.
But on the downside, recently an FMCG distributors’ body has written to Commerce Minister Piyush Goyal seeking an investigation into whether Blinkit, Zepto, and Swiggy Instamart are violating India’s FDI rules.
In conclusion, these three quick commerce startups are conducting opportunities and challenges while significantly strengthening the Indian quick commerce market. Despite facing various difficulties, they continue to demonstrate perseverance and adaptability.
However, while the market remains open to new players providing fresh perspectives and competition, these three companies are currently leading the sector by projecting a strong and stable performance.
