QUICK COMMERCE

SECTORAL ANALYSIS

Sector Overview Industry Map

Sized currently at USD $0.3B, e

Financing
grocery market is expected to End Consumers
reach USD $5B by 2025 according Suppliers Goods in Demand
to a report by Redseer.
Great Room for Growth: Market Dark Stores/ Warehouses Quick Commerce HoReCa
is currently ripe for Quick
commerce in India as online Database Management Technical
System
grocery penetration is only 3% Support Systems
Payments Service Brands
compared to developed markets
Provider Labour
where it is close to 10%. Warehouse
Management System Advertisements
Employee
Delivery Partners

Supply-side Analysis Demand-side Analysis Growth Prospects

Preference of Inventory Model Young Demographics Focused: Q- 5

over Marketplace Model: commerce companies are banking on 4

Inventory Model has generated the Gen-z and Millenials as they have a CAGR 102.2%
3

much higher margins in comparison high propensity to make unplanned 2

to Marketplace Model. impulse purchases. 1

Private label Emergence: Discounts, Quality, and Variety: Top 0

2021 2022 2023 2024 2025

Amazon, Flipkart, BigBasket and
Blinkit all are increasing private
label brands given their profitability.
Value proposition focus on high
value low frequency orders to
low value high frequency orders
in this segment.
three reasons to buy groceries online.
Good Fit in changed Consumer
Behavior: Due to the wrath of
pandemic, consumers now want
everything with ease and within their
vicinity without venturing out much which
has made this model most relevant.
B2B Sales-: Serving HoReCa
Industries will drive up the Average
Order Value(AOV)
Technological Advancement:
Geolocation and contextual targeting
tools have effectively driven the q-
commerce sector into hyper-localism.

Top Investors Total Funding Globally Major Players

Source-Tracxn

E-grocery mainly has two types of buyers-B2B and B2C.In a price sensitive market like India
Bargaining Power
Moderate the customers generally value the price of items and delivery fees more than the speed,
of Buyers building a loyal customer base while maintaining margins will be a challenge.

Bargaining Power of Most of the products lie in the category of commoditized products where bargaining is a
Low
Porter's Suppliers difficult practice for suppliers.

Threats of
5
Quick commerce model is disrupting the kirana stores.Threat of further disruption is
Low
substitutes low.However D2C foods brands like Licious and others can also diversify into this segment.

Forces Threats of new

Moderate
As a company expands in this sector network effects kicks in that would drastically reduce
logistics costs- increased adoption would lead to high density of orders from the same area
entrants which will reduce incremental delivery costs and reduce costs further thus creating a MOAT.

Competition in Vertical players like Zepto, BigBasket, Blinkit and Horizontal players like Paytm, Amazon,
High
the Industry Zomato, Swiggy, Dunzo and recent entry by Ola in this segment seeing its massive growth.