India’s quick-commerce sector, hailed as the country’s fastest-growing industry segment, is expected to face a slowdown in its growth trajectory as expansion beyond major cities remains limited and competition from larger e-commerce players intensifies, according to Blume Ventures’ Indus Valley 2025 report.
The report highlighted that the quick-commerce market share surged to $7.1 billion in the fiscal year 2025, a sharp rise from $300 million in 2022. The sector, led by Zomato-owned Blinkit, Zepto and Swiggy Instamart, witnessed a 24-fold increase in gross order value (GOV) over the same period.
However, Blume Ventures warned that the segment’s monthly transacting user (MTU) growth is likely to taper, following a pattern seen in India’s ride-hailing, food delivery and broader e-commerce sectors.
Adding to the pressure, quick-commerce companies now face growing competition from established e-commerce giants, including Walmart-owned Flipkart, Amazon and Reliance, which are gearing up to launch their own rapid delivery services.
“While it is not guaranteed they will be able to counter quick-commerce players, the increased competition will have some impact on the industry profit pool,” the report stated.
The report also cautioned that the sector’s continued expansion could affect the local grocery ecosystem, potentially prompting regulatory scrutiny to manage its growth.
Earlier this month, TVS Capital Funds Chairman Gopal Srinivasan described India’s quick-commerce surge as a “passing fad” and warned that the model may not be sustainable in the long term.
Blume Ventures, an early investor in crisis-hit quick-commerce firm Dunzo, noted the sector’s volatility. Dunzo, once a rising player in the industry, is reportedly on the brink of collapse following a series of layoffs, founder exits and unpaid vendor dues.
The Indus Valley 2025 report underscores the shifting landscape of quick-commerce in India, pointing to both its rapid rise and the mounting challenges that threaten its future.
