India's quick commerce market to triple to Rs 2 lakh crore by FY28: Report

Mumbai, July 10 (IANS) The Indian quick commerce (Q-commerce) market’s gross order value is poised for exponential growth, nearly tripling from an estimated Rs 64,000 crore in FY25 to around Rs 2 lakh crore by FY28, according to a report on Thursday.

India’s Q-commerce market is estimated to have reached around Rs 64,000 crore in FY25, growing at a staggering CAGR of 142 per cent during FY22-FY25, driven by evolving consumer preferences, hyperlocal infrastructure, and a lower base, according to the report by CareEdge Advisory, a subsidiary of CareEdge Ratings.

“While growth remains strong, the focus is shifting from rapid expansion to reviving profitability and operational efficiency. Going forward, deeper penetration in Tier 2 and 3 cities, and tech-led innovations will likely define the next phase of India’s Q-commerce landscape,” said Tanvi Shah, Senior Director and Head, CareEdge Advisory and Research.

The Q-commerce market revenue generated through fees has grown at a significantly faster pace than the GOV.

The fee-based revenue, which stood at Rs 450 crore in FY22, has reached an estimated Rs 10,500 crore in FY25 and is further projected to reach Rs 34,500 crore by FY28, representing a significant CAGR of 26-27 per cent from FY25 to FY28.

This sharp increase is due to increased platform fees by major players, resulting in higher revenue realisation and a substantial increase in overall GOV, the report added.

Q-commerce industry is still just around 1 per cent of India’s massive grocery market, but that’s exactly what makes it exciting.

“As more consumers embrace the speed and convenience it offers, Q-commerce is set to grow rapidly, even if the broader grocery market growth remains flat,” said Amir Shaikh, Assistant Director, CareEdge Advisory and Research.

This digital backbone has enabled the rapid adoption of e-commerce and Q-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 per cent YoY in 2024 and is expected to maintain a CAGR of 21.5 per cent through 2030.

India's Q-commerce surge is strongly driven by rising digital adoption and expanding consumer spending power.

As of early 2025, the country had over 1.12 billion mobile connections, with 806 million internet users, representing a 6.5 per cent YoY increase, and is projected to exceed 900 million users by year-end.

--IANS

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