India’s quick commerce industry is on a rocket ship, soaring to new heights. The sector, which specializes in rapid delivery of small orders, has seen sales skyrocket by a staggering 280% in just two years, according to a report by financial services firm Chryseum.
This explosive growth is evident in the Gross Merchandise Value (GMV), which has jumped from $500 million in 2021-22 to a whopping $3.3 billion in 2023-24. This impressive leap signifies a major shift in consumer behavior, with shoppers increasingly prioritizing speed and convenience.
The rapid rise of quick commerce stands in stark contrast to the traditional e-commerce sector, which is growing at a steady but slower pace of 14% annually. The quick commerce industry, on the other hand, has expanded at a phenomenal rate of 73% annually in the past year.
India’s quick commerce market is expected to continue its upward trajectory, reaching a value of $9.95 billion by 2029, according to the report. This translates to a compound annual growth rate (CAGR) of over 4.5%.
Despite its rapid growth, the quick commerce sector remains relatively untapped, with only 7% of the total addressable market, valued at $45 billion, currently being served. This presents a huge opportunity for further expansion, with quick commerce already surpassing the market size of food delivery.
To capitalize on this potential, quick commerce platforms are forging strategic partnerships with manufacturers, allowing them to source products directly and bypass traditional distributor networks. This streamlined approach reduces costs and enables platforms to offer more competitive pricing to consumers.
Furthermore, the sector is leveraging cutting-edge technology infrastructure to continuously optimize operations, increasing agility and speed across the value chain. These innovations are enabling platforms to deliver faster and more efficiently, meeting the growing demand for instant delivery in India.
With its impressive growth trajectory and innovative strategies, the quick commerce industry is poised to play a pivotal role in shaping India’s retail landscape in the years to come.
