The year 2024 marks a crucial turning point for quick commerce, or q-comm, in India. With significant developments, innovation, and adoption, consumer expectations for fast delivery have been reshaping the e-commerce sector, especially in bustling urban environments. Quick commerce, aiming for delivery times as short as 10 to 30 minutes, gained momentum beginning in 2023, but it has been in 2024 where this industry truly flourished, backed by technological advancements, improved logistics, and escalating investments from both domestic and global players.
One of the standout achievements in this field was Swiggy’s IPO in November 2024, which launched with a 5.6% premium over its offer price of Rs 390, raising an impressive Rs 11,327 crore and marking itself as the sixth-largest IPO in India. The overwhelming subscription, primarily driven by institutional investors, highlighted significant confidence in Swiggy’s growth trajectory, particularly its quick commerce segment, Instamart. The funds raised are earmarked for expanding this service, positioning it as a formidable competitor against rivals like Blinkit, Zepto, and Flipkart Quick.
Flipkart responded to this fast-paced market by rolling out its quick commerce service, Flipkart Minutes, in August 2024. Initially launched in select areas of Bengaluru, Flipkart Minutes prioritizes ultra-rapid deliveries, sending everything from groceries to electronics and smartphones in as little as 8 to 16 minutes. In December, Flipkart heightened the stakes further with plans for 10-minute medicine deliveries through partnerships with local pharmacies in metro areas. This service is likely to set a new benchmark in the quick commerce space.
Similarly, Myntra, a dedicated fashion e-tailer, entered the fray with its own 30-minute delivery option named M-Now, launched in December 2024. This service is currently available in select Bengaluru neighborhoods and offers approximately 10,000 SKUs. Myntra’s CEO, Nandita Sinha, confirmed plans to scale up offerings significantly, with a goal to reach over 100,000 SKUs within a few months. By utilizing dark stores and collaboration with third-party retailers, Myntra aims to revolutionize the delivery of fashion and beauty products.
Amazon is also making strides in the quick commerce arena with the upcoming launch of its service, codenamed Tez, expected by the end of 2024 or early 2025. Initially intended for rollout in 2025, Amazon has accelerated its plans recognizing the competition already established by players such as Blinkit and Zepto. Tez will represent Amazon’s first foray into the quick commerce sector globally, effectively putting it in direct competition with other established services in India.
Tata is making a considerable entrance too, announcing its Neu Flash quick commerce service aimed at providing groceries and electronics to users in metro cities. Leveraging its diverse brand portfolio, Tata plans to utilize BigBasket for grocery deliveries while Croma will cater to electronics, positioning Neu Flash as a strong contender in the ultra-fast delivery market.
Not to be overlooked, Nykaa has launched a 10-minute delivery pilot in Borivali, Mumbai, recognizing the rapid transformation of the beauty retail landscape. The immediate demand in quick commerce has led Nykaa to consider a brand overhaul to meet these evolving consumer expectations.
Funding activities in this sector reveal the intense competitive and investor interest as well. Zomato completed a Qualified Institutional Placement (QIP) raising Rs 8,500 crore to enhance its quick commerce arm, Blinkit. Plans are in place to establish dark stores and warehouses, which are pivotal for fulfilling rapid delivery promises, along with bolstering advertising efforts to secure a larger market share.
The growth story continues with players like Zepto, which secured $340 million in new funding, raising its total valuation to $5 billion and reflecting investor confidence in the quick commerce potential. The company’s successful fundraising has positioned it as a heavyweight in this sector, echoing the advantages and opportunities that quick commerce presents in the Indian market.
In summary, 2024 marked a transformative year for the e-commerce landscape in India, driven by the rapid expansion of quick commerce services. As major players like Swiggy, Flipkart, Myntra, Amazon, Tata, Nykaa, Zomato, and Zepto ramp up their offerings, consumer expectations for speed and convenience have never been higher. As these companies continue to invest in their infrastructure and innovation, the way we shop may be fundamentally changed, creating an exciting future for quick commerce.