India Quick Commerce Market To Hit $22 Billion GMV By 2027 as Competition Intensifies

India’s quick commerce market is projected to expand nearly eight-fold over the next four years, reaching $22 billion GMV by 2027 from $2.8 billion in 2023, according to a new projection from BofA.

The quick commerce segment is expected to grow from just 0.3% of India’s total retail market in 2023 to 1.7% by 2027, the analysts wrote. Meanwhile, its share of the country’s e-commerce market is predicted to surge from 4.4% to 16.7% over the same period.

This explosive growth potential has spurred e-commerce giants like Flipkart, Amazon and Reliance Industries to prepare entries into a market currently dominated by specialist players like Blinkit, which holds an estimated 40% market share, Swiggy’s Instamart, Zepto, and Bigbasket’s BB Now. The quick commerce market was on an annualized run-rate of clocking $5.5 billion GMV as of last month, Kotak said last week.

While increased competition could pressure margins in the near term, BofA expects the market’s rapid expansion to support multiple large players. The report, however, cautions that consistent execution and service quality, rather than just wide product assortments, will be key to capturing market share in this fast-growing sector.