India’s quick commerce market surges 280% over two years: Chryseum Report

India’s quick commerce sector has seen explosive growth over the past two years, with sales surging by an impressive 280 per cent, according to a recent report by financial services firm Chryseum. The report highlights the rapid expansion of the industry, with the Gross Merchandise Value (GMV) of quick commerce rising from $0.5 billion in FY22 to $3.3 billion in FY24.

Quick commerce, which involves rapid delivery of small orders within a short time frame, is gaining popularity at a pace far exceeding that of traditional e-commerce. While the broader e-commerce market in India is growing at an annual rate of 14 per cent, quick commerce has soared at a remarkable 73 per cent growth rate during FY 2023-24, signaling a significant shift in consumer preference toward faster delivery options.

The report forecasts continued strong growth in the sector, projecting that the quick commerce market will reach a valuation of $9.95 billion by 2029. This would represent a compound annual growth rate (CAGR) of over 4.5 per cent from its current value of $3.34 billion in 2024.

Despite this rapid growth, the sector remains relatively untapped, with a penetration rate of just 7 per cent of the total addressable market, which is estimated to be worth $45 billion. The report highlights that quick commerce has already surpassed the size of India’s food delivery market, indicating vast potential for further expansion.

To capitalise on this growth, quick commerce platforms are increasingly partnering with manufacturers for direct sourcing, bypassing traditional distribution networks. This strategy is aimed at streamlining operations, reducing costs, and offering more competitive pricing to consumers, positioning quick commerce as a formidable player in India’s retail landscape.

"Quick commerce platforms are partnering with manufacturers for direct sourcing, bypassing the traditional distributor network," the report stated.

The technological infrastructure of quick commerce platforms is also playing a key role in driving the sector's growth. These platforms are continuously enhancing their operational processes to improve agility and speed across the supply chain, ensuring faster and more efficient deliveries.

As the industry continues to evolve, quick commerce is expected to play an increasingly important role in India's retail sector. With consumer demand for instant deliveries showing no signs of slowing down, the report predicts that quick commerce will become a cornerstone of the country's fast-paced retail environment in the years to come.

(With ANI inputs.)