Will India's Quick Commerce Market Reach Rs 2 Lakh Crore by FY28?

Mumbai, July 10 (NationPress) The quick commerce (Q-commerce) sector in India is on the brink of remarkable growth, with its gross order value expected to soar nearly threefold from an estimated Rs 64,000 crore in FY25 to around Rs 2 lakh crore by FY28, as outlined in a recent report.

The Q-commerce market is anticipated to achieve approximately Rs 64,000 crore in FY25, reflecting an astonishing CAGR of 142 percent between FY22 and FY25. This growth is fueled by changing consumer habits, enhanced hyperlocal infrastructure, and a relatively low starting point, according to insights from CareEdge Advisory, a division of CareEdge Ratings.

“As we continue to witness robust growth, the emphasis is shifting from aggressive expansion towards enhancing profitability and operational effectiveness. The upcoming phase of India's Q-commerce landscape is likely to be characterized by deeper market penetration in Tier 2 and Tier 3 cities, alongside tech-driven innovations,” stated Tanvi Shah, Senior Director and Head at CareEdge Advisory and Research.

Notably, the revenue generated from fees in the Q-commerce market has surged at a markedly faster rate than the gross order value.

Fee-based revenue, which was Rs 450 crore in FY22, is estimated to climb to Rs 10,500 crore by FY25, and further ascend to Rs 34,500 crore by FY28, indicating a significant CAGR of 26-27 percent from FY25 to FY28.

This dramatic growth is attributed to increased platform fees imposed by key players, leading to heightened revenue realization and a substantial uplift in overall gross order value, the report elaborated.

The Q-commerce industry currently accounts for only about 1 percent of India’s expansive grocery market, which adds an element of excitement to its future potential.

“As an increasing number of consumers appreciate the speed and convenience offered by Q-commerce, we anticipate rapid growth in this sector, even if the overall grocery market experiences stagnation,” remarked Amir Shaikh, Assistant Director at CareEdge Advisory and Research.

This digital infrastructure has facilitated the swift adoption of e-commerce and Q-commerce platforms. In 2024, India boasted over 270 million online shoppers, making it the second-largest e-retail market globally.

The e-commerce sector saw a remarkable growth rate of 23.8 percent year-on-year in 2024 and is projected to sustain a CAGR of 21.5 percent through 2030.

The rapid expansion of India's Q-commerce is significantly driven by increasing digital adoption and growing consumer spending capacity.

As of early 2025, the nation had more than 1.12 billion mobile connections and 806 million internet users, marking a 6.5 percent year-on-year increase, with projections indicating that internet users will surpass 900 million by the end of the year.