Recently at the event of India Ideas Conclave 2024 in Bengaluru, Union Finance Minister Nirmala Sitharaman talked about the success of quick commerce start-ups and how they can boost India’s global reputation as a hub for innovative solutions.
She also mentioned quick commerce as a “one-of-a-kind innovation” unique to India. She encouraged startups in this sector to harness their solutions on a global scale, positioning the country as a hub for modern and scalable innovations.
According to the Finance Minister “India’s businesses, particularly the startups, especially the quick commerce for instance are truly one of a kind innovation that only India has,”
However, she also acknowledged the challenges the quick commerce platforms pose to traditional kirana stores.
“… that’s not to say the brick-and-mortar retail is not doing fine, they are being challenged, I recognise that,” the FM said, stressing the need for a balanced approach.
“We need to handhold and support our brick-and-mortar retail. No doubt. But use this to brand India as a destination of innovative solutions to modern, urban needs. This will serve as an incentive to scale up internationally,” she added.
Quick commerce in India is booming, driven by increasing urbanization, rising disposable incomes, and the convenience of smartphone ordering. Companies like Blinkit, Instamart, Zepto and bigbasket are leading this rapid growth, offering speedy delivery of groceries, household items, and more. However, challenges like high operating costs, traffic congestion, and last-mile delivery complexities persist.
As per the report of financial services form Chryseum “The Quick Commerce Industry in India Market size is estimated at USD 3.34 billion in 2024, and is expected to reach USD 9.95 billion by 2029″
The report also mentioned that to seize this opportunity, quick commerce platforms are progressively collaborating with manufacturers for direct sourcing, bypassing conventional distributor networks. This approach allows platforms to optimize operations, cut costs, and provide consumers with more competitive pricing.
