India's Quick Commerce Sector Projected for Significant Growth

The quick commerce industry in India is on the brink of a major expansion. According to a report by HSBC, the sector is expected to have between 5,000 to 5,500 dark stores operational by the fiscal year 2025-26. Furthermore, the gross order value is anticipated to reach between $35 billion and $40 billion by the financial year 2027-28.

Major Players Driving the Expansion

Leading companies such as Blinkit, Zepto, and Swiggy’s Instamart have been at the forefront of this rapid expansion. Blinkit, Zomato’s quick commerce arm, currently operates over 1,000 stores and aims to double this number by the end of the fiscal year. Similarly, Zepto has expanded its network to 850 stores, with plans to exceed 1,000 stores soon. Swiggy's Instamart is also rapidly approaching the 1,000-store milestone.

Optimization and Profitability in Focus

HSBC suggests that the phase of aggressive expansion is nearing its peak. Companies like Zepto are expected to shift their focus towards optimizing capacities and improving profitability after reaching the 1,000-store mark. Meanwhile, Blinkit and Swiggy are likely to moderate their expansion plans, concentrating on operational efficiency and financial health.

This strategic shift is anticipated to ensure that the sector’s store capacity will be sufficient to meet the throughput expectations by the end of the 2024-25 financial year, paving the way for a more sustainable growth trajectory.