India’s quick commerce boom: Gross order value set to hit ₹2 lakh crore by FY28

India's quick commerce market is set to triple in size from an estimated ₹64,000 crore in FY25 to around ₹2 lakh crore by FY28, according to a recent report. The growth will be driven by shifting consumer preferences, the development of hyperlocal infrastructure, and a low base effect.

“The Indian quick commerce market gross order value is poised for exponential growth, nearly tripling from an estimated ₹64,000 crore in FY25 to around ₹2 lakh crore by FY28,” said CareEdge Analytics & Advisory, a subsidiary of CareEdge Ratings, in a report.

According to the report, the quick commerce market in India is estimated to have reached approximately ₹64,000 crore in FY25, recording a staggering CAGR of 142% between FY22 and FY25.

This strong growth is largely driven by increasing digital adoption and rising consumer spending. As of early 2025, the country had over 1.12 billion mobile connections and 806 million internet users, representing a 6.5% year-on-year increase, with the number expected to surpass 900 million by year-end. Smartphone usage has continued to rise among Indian households, including rural areas, supported by affordable data and various government initiatives.

The CareEdge Analytics & Advisory report highlights that the quick commerce sector is likely to sustain strong double-digit growth in the years ahead, driven by wider adoption in Tier II and III cities, improved delivery infrastructure, and growing consumer preference for instant fulfillment. This remarkable growth is based on a low starting point, broader platform usage, deeper regional penetration, and increased digitalisation, along with a behavioural shift towards convenience and faster deliveries.

“India’s quick commerce market is set to grow 3X by FY28, with Gross Order Value (GOV) expected to reach nearly ₹2 lakh crore and platform fee revenues surpassing ₹34,000 crore,” said Tanvi Shah, Senior Director & Head-Advisory & Research, CareEdge Analytics & Advisory.

While growth remains strong, the focus is shifting from rapid expansion to reviving profitability and operational efficiency. Going forward, deeper penetration in Tier II and III cities, and tech-led innovations will likely define the next phase of India’s quick commerce landscape, Shah added.

Platform fee revenues to cross ₹34,000 cr by FY28

The report noted that revenue from platform fees in the quick commerce market has outpaced the growth of GOV. From ₹450 crore in FY22, fee-based revenue has grown to an estimated ₹10,500 crore in FY25 and is projected to reach ₹34,500 crore by FY28, reflecting a strong CAGR of 26–27% from FY25 to FY28. This surge is attributed to increased platform charges by leading players, resulting in higher revenue realisation and a significant rise in overall GOV.

“The quick commerce industry is still just around 1% of India’s massive grocery market, but that’s exactly what makes it exciting. As more consumers embrace the speed and convenience it offers, quick commerce is set to grow rapidly, even if the broader grocery market growth remains flat,” said Amir Shaikh, Assistant Director, CareEdge Analytics & Advisory.

This digital backbone has enabled the rapid adoption of e-commerce and quick commerce platforms. India had over 270 million online shoppers in 2024, making it the second-largest e-retail user base globally. The e-commerce market grew 23.8% year-on-year in 2024 and is expected to maintain a CAGR of 21.5% through 2030.

Also, with an increase in disposable incomes, there has been a gradual change in consumer spending behaviour as well. Per capita private final consumption expenditure (PFCE), a measure of consumer spending, has also shown significant growth from FY15 to FY25 at a CAGR of 9.68%. Rising disposable incomes and higher spending capacity are likely to drive the growth of quick commerce.

Shifting focus from speed to innovation and strategy

According to CareEdge Analytics & Advisory, India's quick commerce players are transitioning from simply being fast to becoming more innovative and strategic. Multiple players are not only expanding SKUs and launching premium and D2C product lines, but are also monetising storefronts with in-app advertising and brand placements. They are leveraging AI for hyperlocal demand forecasting, optimising dark store layouts using heatmaps, and enabling quicker picking through voice- and light-assisted systems. Logistics is becoming more focussed with automated dispatching and dynamic rider routing. These factors together are helping the quick commerce industry become a key pillar in India’s evolving retail landscape.

The report notes that the core operational engine powering quick commerce is dark stores or micro-warehouses, which enable ultra-fast deliveries. During FY24–25, the number of dark stores increased from approximately 1,800 to 3,072, marking a 70.7% year-on-year growth. Notably, alongside the increase in dark stores, average revenue per store also rose by 25% in FY25, reflecting strong demand and a growing user base for quick commerce platforms. While platforms are shifting their focus from hypergrowth to restoring profitability, they are leveraging advertising, subscriptions, private labels, and tech-driven inventory optimisation. These strategic changes are expected to support long-term and sustainable growth.

The fee rate across the quick commerce sector has shown a steep upward trend between FY22 and FY25, driven by stronger monetisation strategies. For example, leading players reported take rate increases from around 7-9% in FY22 to 14–18% in FY25, effectively doubling over three years. These improved monetisation efforts, led by convenience fees and delivery charges, have significantly contributed to strong growth in fee revenue. CareEdge Analytics & Advisory highlights that as platforms refine their fee models and scale up operations, fee-based revenue is expected to remain a major growth engine for the sector.