India's Quick Commerce Industry Experiences 280% Sales Surge in Two Years

India's quick commerce industry has grown by 280% from USD 0.5 billion in FY22 to USD 3.3 billion in FY24. The sector, still largely untapped with a 7% penetration rate, offers significant expansion opportunities. Experts predict its crucial role in India's retail future.

India's quick commerce industry has seen a staggering 280% growth over the past two years, with sales skyrocketing from USD 0.5 billion in FY22 to USD 3.3 billion in FY24, according to a new report by financial services firm Chryseum.

Quick commerce, or rapid delivery of small orders, is outpacing traditional e-commerce by growing at an annual rate of 73%, compared to the 14% annual growth rate of e-commerce. This shift underscores the growing consumer preference for faster and more convenient delivery options.

Currently valued at USD 3.34 billion in 2024, India's quick commerce market is projected to reach USD 9.95 billion by 2029, growing at a compound annual growth rate (CAGR) of 4.5%. Despite the rapid growth, the sector's penetration rate stands at just 7% of the total addressable market, valued at USD 45 billion, highlighting significant potential for further expansion.

To capitalize on this potential, quick commerce platforms are increasingly partnering with manufacturers for direct sourcing, effectively bypassing traditional distributor networks. This strategy allows platforms to streamline operations, reduce costs, and offer more competitive pricing to consumers.

The tech infrastructure of these platforms is designed to continuously improve operational processes, enhancing speed and efficiency in response to growing demand for instant deliveries. Experts believe quick commerce will play an increasingly important role in India's retail landscape.

(With inputs from agencies.)