Kathryn McLay says Walmart is excited about Flipkart’s growth but is not so focused on profitability in such a way that we would trade off market share and growth for the future. Amid the quick commerce rush, Flipkart’s Indian marketplace entity received a cash infusion of Rs 2,225 crore (around $260 million) from its Singapore-based parent, according to regulatory filings.
India's FMCG sector faces a mixed outlook as early monsoons boost rural consumption but dampen urban sales of summer products like soft drinks and ice cream. While rural demand is expected to surge with improved agricultural output, companies focused on urban markets anticipate a slowdown, particularly in impulse-driven purchases.
NEWME has introduced NEWME Zip, a 60-minute fashion delivery service in Bengaluru, following a successful pilot in Delhi-NCR. The brand leverages dark stores and retail outlets, testing in-house riders to enhance delivery. Aiming to expand to Hyderabad and Mumbai, NEWME reported 3x growth last fiscal year and plans to add 10-12 offline stores this year, joining the quick commerce trend.
Flipkart is experiencing strong momentum with 20–25% year-on-year order growth in May, despite an industry slowdown. CEO Kalyan Krishnamurthy highlighted the firm’s India re-domiciling move, profitability push, and 30% projected June growth. He also reaffirmed that Flipkart’s quick commerce venture, Minutes, aims to scale up to 800 operational dark stores by the close of 2025.
Zepto's cofounder, Aadit Palicha, accused a rival company's CFO of orchestrating a smear campaign by spreading false information to investors and media. Palicha defends Zepto's financial health, citing significant growth in gross order value and Ebdita improvement. He asserts the company's strong cash position and denies plans for large-scale store closures.
Otipyhas ceased operations, impacting 300 employees and gig workers amid withheld salaries and delayed payments. This comes amid a slump in grocery subscription services, thanks to the surge of quick commerce platforms. The rise of 10-minute delivery models has also eaten into sales at traditional kirana stores.
Flipkart Minutes aims to boost average order values and profitability by integrating Flipkart's extensive product range. Expanding rapidly, the quick commerce service plans to double its dark store count to 800 by year-end, focusing on long-tail items to enhance customer retention and order frequency. While scaling up, Flipkart is also evaluating expansion into tier-II and tier-III cities based on demand.
Reliance Retail, More, and Spencer's are launching dark stores. This move aims to match the speed of Blinkit, Swiggy Instamart, and Zepto. These quick commerce platforms have impacted kiranas and retail chains. Dark stores enable faster deliveries within a small radius. More Retail has already set up 45 dark stores and plans to add 100 more.
Quick commerce has seen substantial growth for FMCG companies in India, with sales increasing by 50-100% in FY25. While still representing a modest 2-4% of overall sales for major players like HUL and Britannia, the channel's expansion into new locations and better margins due to premium product sales are noteworthy.
Swiggy's Instamart has partnered with Home Centre, becoming the first quick commerce platform to offer the brand's furniture and home décor items. Customers in Delhi NCR, Mumbai, and Bengaluru can now access over 120 Home Centre products, including kitchen essentials and décor, with delivery in under 10 minutes.
Baskin Robbins is expanding its presence in India with a new product line targeting general trade, modern retail, and quick commerce platforms. The company is introducing mini sticks, cones, and low-sugar milkshakes to cater to impulse purchases and at-home consumption.
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