India's quick commerce (Q-commerce) sector has experienced remarkable expansion, with a compound annual growth rate (CAGR) of 142% between fiscal years 2022 and 2025. According to a recent report by CareEdge Advisory, the market is estimated to have reached approximately ₹64,000 crore in FY25. This growth is spurred by evolving consumer preferences, the development of hyperlocal infrastructure, and a relatively lower base. The gross order value (GOV) in the Indian Q-commerce market is projected to nearly triple from this ₹64,000 crore in FY25 to around ₹2 lakh crore by FY28.
Several factors contribute to this impressive growth trajectory. Rising adoption of Q-commerce platforms, expansion into Tier II and Tier III cities, enhanced delivery networks, and a shift in consumer behavior toward convenience and speed are key drivers. Increasing digitization and growing urbanization, changing lifestyles, and rising disposable incomes also favor quick, app-based shopping experiences.
Major FMCG brands are increasingly embracing Q-commerce through platform-specific SKUs, premium offerings, and marketing partnerships, which broadens product variety and boosts average order values. Simultaneously, significant investments are being made in dark stores, technology infrastructure, and delivery optimization, creating a foundation for efficient and scalable operations. The number of dark stores increased by 71% year-on-year in FY25, with average revenue per store also increasing by 25.1%, demonstrating improved unit economics. These strategic moves are expected to support sustainable and long-term growth.
While the Q-commerce industry currently accounts for only about 1% of India's massive grocery market, its potential for rapid growth is significant. As more consumers embrace the speed and convenience it offers, Q-commerce is poised to expand rapidly, even if the broader grocery market's growth remains flat.
Notably, the Q-commerce market revenue generated through fees has grown at an even faster pace than the GOV. Fee-based revenue, which was ₹450 crore in FY22, is estimated to have reached ₹10,500 crore in FY25 and is projected to reach ₹34,500 crore by FY28, representing a CAGR of 26-27% from FY25 to FY28. This sharp increase is attributed to increased platform fees by major players, resulting in higher revenue realization and a substantial increase in overall GOV. Leading platforms have reported take rate increases from around 7-9% in FY22 to 14-18% by FY25, effectively doubling in three years.
The focus is shifting from rapid expansion to reviving profitability and operational efficiency. Companies are now leveraging advertising, subscriptions, private labels, and technology-driven inventory optimization to support long-term profitability while maintaining their competitive edge in hyperlocal delivery. Tanvi Shah, Senior Director & Head, CareEdge Advisory & Research, noted that deeper penetration in Tier II and Tier III cities and tech-led innovations will likely define the next phase of India's Q-commerce landscape. Logistics is also becoming more focused, with automated dispatching and dynamic rider routing.
The Indian Q-commerce market is strongly driven by rising digital adoption and expanding consumer spending power. As of early 2025, India had over 1.12 billion mobile connections, with 806 million internet users, representing a 6.5% year-over-year increase, and is projected to exceed 900 million users by year-end. Per capita Private Final Consumption Expenditure (PFCE), a measure of consumer spending, has also shown significant growth, further fueling the growth of Q-commerce.
